Central Bank: Irish economic outlook 'exceptionally sensitive' to global developments

A heavy reliance on corporate tax from US multinationals could make Ireland vulnerable to the policies of the incoming Trump administration

The Central Bank of Ireland's quarterly bulletin points to structural vulnerabilities as well as significant potential exposure to policy changes in the US. Picture: Leah Farrell/RollingNews

Constraints and structural vulnerabilities in the economy as well as its significant potential exposure to policy changes in the US means Ireland is “exceptionally sensitive” to global economic developments such as trade tensions, the Central Bank of Ireland has warned.

In its latest quarterly bulletin, the Central Bank noted that the public finances rely on a relatively narrow tax base, especially as it relates to corporate tax, chiefly from US multinationals, which “needs to be addressed”.