Economy

Irish economy set for 11% growth surge as restrictions ease, ESRI says

Read more at www.irishtimes.com

The Irish economy will rebound dramatically this year – growing by 11 per cent – on the back of stronger exports and a resurgence in consumer spending and investment linked to the easing of restrictions, the Economic and Social Research Institute (ESRI) has said.

This is the highest rate of growth ever forecast by the ESRI and more than double what the Government is forecasting.

The think tank, however, warned that the pandemic would still have a scarring effect on the economy in terms of higher unemployment and fewer homes being built. The latter is likely to “exacerbate” existing supply pressures in the housing market, it said.

In its latest economic commentary, the ESRI delivered one of its most upbeat assessments of the Irish economy and its future growth prospects.

It suggested growth this year and next would be driven by a combination of stronger exports, particularly from the multinational sector, and a rebound in consumption and investment linked to the easing of restrictions.

Consumer spending, which contracted by almost 10 per cent last year, is expected to grow by 7.5 per cent this year, aided by the unwinding of excess savings.

These forces would drive “substantial growth” of 11.1 per cent in 2021 and 6.9 per cent in 2022.

Read more at www.irishtimes.com

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