Irish economy set to grow with 150,000 jobs expected by 2020

Irish economy set to grow with 150,000 jobs expected by 2020

The Central Bank says domestic demand looks set to rise by 5% but it is likely to moderate next year and again in 2020.

It expects an extra 150,000 jobs to be created by 2020.

Director of Economics Mark Cassidy also says the possibility of full employment next year could have a negative impact on households.

"We're expecting unemployment to fall below 5% next year and as unemployment gets closer to 5% the risk of overheating pressures does increase, this means that prices and costs can start to increase quickly hitting household spending power but also overall economic competitiveness," said Mr Cassidy.

"Therefore, there is a higher risk of returning to boom-bust conditions."

But the CBI is warning of risks posed by Brexit and Ireland's high dependency on corporation tax from international companies.

It says Irish jobs will be lost and the economy will suffer if the British Prime Minister pushes ahead with her Brexit plan.

In its latest quarterly bulletin, the Central Bank says Theresa May's "Chequers" proposal would shrink the economy here by 2% and see employment levels drop by 1%.

It has also found the Irish agriculture sector will be one of the hardest hit industries after Brexit.

"The impact will be most severe in the event of a hard Brexit in March of next year," said Mr Cassidy.

"In that case, punitive tariffs would be levied immediately on Irish exports to the UK.

"With very high tariffs in some cases, particularly agriculture, in that case we would expect to see lower employment of the order of around 40,000 people over five years compared to if no Brexit had taken place."

Digital Desk

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