The Irish economy is set to grow by 3.9% in 2015, according to a recent release from the Central Statistics Office. This follow on from a GDP growth rate of 4.7% in 2014. As a result, unemployment levels are set to fall below 10% in 2015.
Longer term projections for the Irish economy are also very positive, with Irish GDP set to grow by 3.4% in 2016, 2017 and 2018 respectively.
As Ireland is an export led economy these prediction are contingent on continues GDP growth of our main trading partners, namely the Euro Area, the United States and the United Kingdom. Some noteworthy predictions for 2015 is that investment in building and construction is set to grow by 10.4% whilst investment in transport and equipment is set to grow by a whopping 13.8%
As a result of this increase in GDP, tax revenue is expected to grow by 3.1% in 2015.
There was more good news as Irelands’ credit rating increased dramatically over the past six years, from junk status in 2008 to A- in 2014(Fitch and DBRS). This increase in credit ratings have result in the Irish government being able to borrow at record low rates. The yield on five year Irish bonds currently stands at 1.64%, which is less than the UK, which has a five year yield of 1.71%. If Ireland was to achieve its objective of receiving an A rating in 2015, in theory, the cost of borrowing will fall even further, making the Irish economy an even more attractive proposition to invest in.