Brexit already hitting economy, says ESRI

Brexit uncertainty is already weighing on spending and investment plans, and banks are less willing to advance loans to SMEs, according to the Economic and Social Research Institute. In its latest quarterly report, the think tank said that economy is still growing at a healthy pace but that Brexit uncertanity is already playing a big role by capping the spending plans of both Irish consumers and businesses.

Reflecting this uncertainty, GDP will grow 3.8% this year, down from 4.2% in an earlier projection, and expand 3.2% in 2020. In a Brexit publication earlier this week, the ESRI and the Department of Finance predicted that over 10 years that the economy would expand no matter what form Brexit will take but said GDP would grow at a slower pace than would otherwise be the case if the UK had voted to stay in the EU.