Ireland Economic Outlook
October 27, 2020Available data for Q3 points to a frail economic scenario, after GDP plummeted at a record-breaking pace in Q2. Following robust expansions in July, industrial output swung to contraction in August and retail sales growth lost some pace in the same month. Moreover, while the manufacturing PMI stagnated in September, the services PMI fell back into negative territory amid falling new business. Turning to Q4, due to a surging number of new virus cases, the authorities imposed a six-week lockdown effective from 22 October, closing all non-essential businesses, bars and restaurants, while also limiting movement, which is set to weigh on activity in the quarter. Meanwhile, on 13 October, the government presented the 2021 budget draft with a spending package of almost EUR 18 billion—the largest in Irish history—aiming to prop up the economy amid the fallout from the health crisis.
Ireland Economic GrowthAfter a projected contraction this year on the impact from Covid-19, the economy is set to rebound in 2021 as global demand recovers. Fiscal stimulus and liquidity-boosting measures should also support a rebound in domestic activity. A prolonged health crisis and a potential no-deal Brexit cloud the outlook, however. FocusEconomics panelists project GDP to expand 4.3% in 2021, which is down 0.4 percentage points from last month’s forecast, and 3.4% in 2022.
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
January 12, 2021
Manufacturing production jumped 55.7% in November (October: -0.4% mom), marking the strongest increase on record.
January 6, 2021
The AIB services sector Purchasing Managers’ Index (PMI) jumped in December, rising to 50.1 from November’s 45.4.
January 4, 2021
The AIB manufacturing Purchasing Managers’ Index (PMI) climbed to 57.2 in December from November’s 52.2, ending the year with the best result since July.
December 16, 2020
The KBC Bank Ireland/ESRI consumer confidence jumped to 74.6 in December, from November's 65.5, marking the best reading since March.
December 7, 2020
Manufacturing output increased 0.1% month-on-month in seasonally-adjusted terms in October, which contrasted September's 5.2% decrease.