According to the ESRI’s Autumn economic commentary, 2017 will be another strong growth year for the Irish economy. A significant part of this strong growth is the strong performance of the Irish labour market and the consequent growth in personal consumption. Hence, the ESRI predicts GDP growth of 5% for 2017, which is significant, as it represents an increase of 1% of their previous predictions.
The ESRI recommends that the government should avoid stimulating economic activity as this could overheat an already strong growth economy.
When we compare this performance to our nearest neighbours, the UK, the performance of the Irish economy is hugely impressive. FocusEconomics predicts UK GDP will increase by 1.6% in 2017 and drop to 1.3% in 2018. The huge uncertainty around Brexit are making UK consumers much more conservative in regards their spending. Also, consumer spending is not helped by rising inflation in the UK economy.
GDP growth in the US is set to hit 2.3% in 2018.
The Irish economy, with growth rates of 5% in 2017, is one of the best performing economies in the Eurozone. This is despite political uncertainty in the US and huge uncertainty in regards the actual impact of Brexit.