How you see Ireland’s economic prospects may depend on whether your glass is half full or half empty in the post-Paddy’s day haze. There’s plenty to be bullish about, but warning signs have begun to flash in recent months as we brace for Brexit and a global slowdown.
First, the good news:
- The latest CSO numbers put GDP growth for 2018 at 6.7%, faster than China, and enough to make Ireland the fastest growing EU country for the fifth year running.
- Nearly 1,000 jobs a week were added during 2018 to take the total number in work close to 2.3 million for the first time, while the number unemployed fell to its lowest level in a decade.
- Workers are starting to feel it in their back pockets as the annual rate of growth in hourly earnings reached 3.8% in the final three months of 2018, the fastest since early 2009.
- At the same time, consumer prices continue to increase at an annual rate of less than 1%, the lowest rate in the EU, so that higher incomes aren’t eaten up by higher cost goods and services.
In many ways, the Irish economy looks to be in ‘goldilocks’ territory: not too cold, but still not too hot. Moreover, the number of people outside the labour force that could look for work again in the right conditions is still over 100,000, suggesting it still has room to run if factors beyond our control don’t get in the way.
*** This article was first published on thejournal.ie on 24 March 2019 *** Continue reading
