Earlier in the week, business group, Ibec released the latest quarterly economic outlook of Ireland, which shows that the Irish economy has managed to gain a strong position as it moves into a post-recovery stage.
The report also shows that households have clearly benefited as incomes of individuals have risen.
Ibec forecasts the buoyant consumer economy growing by 2.9% in volume terms and an overall growth of 5.7% in 2018.
The business group further predicts that there is almost no sign of this consumption being driven by the excess credit of the boom years, also as the economy nears full employment, the Irish labour market’s biggest task would be of finding workers to fill vacancies.
Notably, in its assessment of the economy, Ibec also warns to not go easy and continue being aggressively competitive, “especially during this period where external threats are most likely to materially impact on our (Ireland’s) growth.”
Ibec continues, “It is quite crucial that we take the right decisions to protect our indigenous industry especially as the economy comes close to capacity and navigates significant challenges to our external environment during the upcoming years.”
According to Gerard Brady, the head of Tax and Fiscal Policy at Ibec, he said “despite Brexit, the economy continues to grow, while trade remains robust, and it is quite clear that households are the biggest gainers through incomes which are increasing at the fastest rate in Europe.
Brady further added, “Back in 2017, 19% of Ireland’s workforce had either started working or switched jobs. This is a much better result as it was 13.4% back in 2010 and is a clear indication of the health of the labour market.
Brady then said, “Due to this significant improvement, Q1 2018 saw the fastest wage growth in the economy since the crisis with average wage growth reaching 2.5% year-on-year. Based on all these factors we conclude our view that the economy is now firmly in a ‘post-recovery’ phase.”