Ireland Economic Outlook
September 28, 2021GDP growth moderated in Q2, driven primarily by a surge in imports, with private consumption, public spending and fixed investment all rebounding in the quarter. That said, modified domestic demand—which better captures the country’s underlying economic performance—grew substantially more in Q2 than in Q1. The rosier domestic economy was largely thanks to a successful vaccination campaign and the loosening of restrictions. Turning to Q3, the recovery seems to have continued, with industrial output hitting an eight-month high in July, and the manufacturing and services PMIs both averaging higher in July–August than in Q2. Moreover, the unemployment rate fell and consumer confidence rose in July–August, likely supporting household spending. Moreover, on 31 August the government set out plans to scrap most remaining restrictions from 22 October onward, boding well for activity ahead.
Ireland Economic GrowthThe recovery is set to be robust in 2021 and 2022, with the government’s plans to remove remaining restrictions acting as a potential catalyst. Healthy domestic and foreign demand will provide foundations for growth, although tensions with the UK and OECD minimum global corporate tax rate proposals could be a thorn in the recovery’s side. FocusEconomics panelists project GDP to expand 9.9% in 2021 and 4.9% in 2022, which is up 0.2 percentage points from last month’s forecast.
Ireland Economy Data
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|Bond Yield||-0.09||0.27 %||Jan 01|
|Exchange Rate||1.12||0.65 %||Dec 31|
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Ireland Economic News
October 7, 2021
Industrial production dropped 2.8% in month-on-month seasonally-adjusted terms in August, which contrasted July's 6.9% increase. On an annual basis, overall industrial production rose 24.3% in August, which was notably better than July’s 15.4% expansion.
October 5, 2021
The IHS Markit Services Purchasing Managers’ Index (PMI) came in at 63.7 in September, matching August's reading.
October 1, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) fell to 60.3 in September from August's 62.8.
September 10, 2021
Manufacturing production increased 7.6% month-on-month in seasonally-adjusted terms in July (June: -4.2% mom).
September 3, 2021
The IHS Markit Services Purchasing Managers’ Index (PMI) fell to 63.7 in August from July's 66.6.