Warning economy close to overheating; think tank recommends taxing the rich

Warning economy close to overheating; think tank recommends taxing the rich

There is a warning the economy is close to overheating.

A leading think tank says the outlook is positive but that Brexit could do significant damage.

This analysis is from the Nevin Economic Research Institute and it is good news overall.

The economy is expected to grow by 4.6% this year and 3.3% next year.

But that all depends on how Brexit works out, with the report saying no deal would do significant damage to the economy both sides of the border.

On the jobs front, they're expecting an extra 70,000 to be hired this year while wages should also go up by around 2%.

The institute recommends residential property taxes not going up by as much as they are now.

It also says taxing the rich could be looked at and describes a wealth tax as an attractive option.

Meanwhile, another report shows the South East economy is performing strongly, with further investment and jobs growth very likely.

The summer 2019 edition of ‘Economy at a Glance’ from the Ireland South East Development Office (ISEDO) shows the region has grown steadily over the last seven years across all key economic indicators.

With 5,900 new jobs created across Carlow, Kilkenny, Tipperary, Waterford and Wexford between the first quarters of 2018 and 2019, the report shows an estimated €700m in company investments committed to the region over the last 12 months alone.

Just last week, LMC announced the creation of 200 jobs at the former Procter & Gamble plant in Nenagh, Co Tipperary while the Agora Companies are this week announcing the creation of 135 additional jobs in Waterford.

Other positive developments highlighted in the report include the government’s agreement in principle in June to provide €5m of exchequer funding towards a €12m runway extension at Waterford Airport that is also being backed with private sector investment of €5m and support totalling €2m from the local authorities in Kilkenny, Waterford and Wexford.

Local authorities have also successfully combined to secure €10.6m funding for a greenway which will link New Ross to Waterford city centre where it will join the existing Waterford Greenway to Dungarvan, Co Waterford. The Suir Blueway opened between Carrick-on-Suir and Cahir, Co Tipperary in May also strengthens the region’s tourism and leisure offering.

"This mid-year analysis underlines the good progress being made in the South East," said Alan Quirke, director, ISEDO.

"Looking across the five counties of the region, we see very significant public and private sector investments that are not only generating employment now but also positioning the region for growth in the years to come.

"We also see the South East appealing more and more to businesses and individuals looking for an alternative to the increasingly congested and prohibitively expensive greater Dublin area."

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