Irish economy experiencing 'exceptional growth' despite pandemic - Ibec

The Irish economy is going through a period of "exceptional growth" despite the pandemic, according to Ibec
Irish economy experiencing 'exceptional growth' despite pandemic - Ibec

James Cox

The Irish economy is going through a period of "exceptional growth" despite the pandemic, according to Ibec.

The employers body's latest Quarterly Economic Outlook predicts the economy to grow by 13 per cent this year and six per cent next year.

However, it is warning labour shortages are the biggest barriers to future growth.

Positive economic outlook

Chief economist with Ibec, Gerard Brady, says indicators point to a positive economic outlook.

"We are seeing rising savings continue throughout the last year, we're also seeing income growth coming back into the economy very strongly, particularly in sectors not effected by Covid and a tight labour market which means that income growth will grow over time."

Ibec also said the biggest barriers to future trade growth will be supply chain problems rather than a lack of demand.

Christmas spending

The report also found that upwards of €5.4 billion could be spent by Irish consumers over Christmas if shopping habits repeat the pattern of recent years.

The average Irish household is expected to spend €800, however, spending on services may be limited due to restrictions.

Meanwhile, the rise in online spending since the Covid-19 pandemic struck has persisted, with spending on debit and credit cards up 50 per cent on 2019 levels.

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