Brexit could still prove to be a manageable complication

The past number of years have seen a stronger than expected recovery by the Irish economy. This has been led by robust export growth, but there has also been a strong rebound in domestic demand, including business investment, construction and consumer spending.

The economy performed strongly again in 2017. The latest National Accounts data show that GDP grew by 10.5% in the first three quarters of the year. However, Irish GDP figures are distorted by large flows related to the activities of some multinational companies. A better measure of underling activity is modified final domestic demand, which excludes factors such as intellectual property rights and aircraft leasing that distort GDP figures. It grew by 4.9% in the first three quarters of 2017.

Exports maintained their strong uptrend in 2017, with service exports rising by 13% in the first three quarters of the year. Construction continued to rebound, with output up by 17% to the end of September. House building continued to rise steadily, albeit from low levels.