ESRI ups 2018 growth forecast to almost 9%

The Economic and Social Research Institute has revised up its growth forecast for this year to 8.9%.

It said this is due to faster than expected growth in the domestic economy and multinational corporate activity.

It also forecasts growth of 4.5% next year, but on the assumption that a Brexit agreement along the lines of the European Economic Area is reached.

In its latest quarterly economic outlook, the ESRI says unemployment should average 5.7% this year, falling to 5.1% next year.

It estimates housing completions this year at around 18,600 units, rising to 24,500 next year.

It says there are two reasons why a neutral fiscal policy by the Government - one that neither contracts nor stimulates the economy - may be preferable.

Firstly, key infrastructure deficits in Ireland, notably in public housing, require significant investment

It said this can add to the productive capacity of the economy and reduce housing costs, which can aid economic competitiveness.

Secondly, it says an explicitly contractionary budget - when the risks of a no-deal Brexit are quite high - could make any economic fallout from a hard Brexit worse, reinforcing the shock to the economy rather than insulating it from damage.

rte.ie
News Ireland Business Economy Brexit Housing ESRI
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
1 view in january
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Sports
Jonathan Sexton will have no trouble shrugging off the latest barb from English coach Eddie Jones, according to Leinster backs coach Felipe Contepomi. And despite not playing since defeat to Munster at Christmas, the Argentinian argues that Sexton's experience will ensure he will be ready to face the English in the Aviva Six Nations opener on Saturday week. "Eddie said it, I'll put it that way," said Contepomi after Jones claimed Sexton has a "bat phone" t...
Crime
It brings the total number of arrests to four. Detectives investigating a car bomb explosion in Derry have arrested a further two men. The 34 and 42-year-olds were taken into custody by police in the city yesterday evening. It brings to four the total number of arrests. Two other men - both aged in their 20s - were arrested earlier on Sunday. The explosion happened outside Bishop Street courthouse on Saturday night. Nobody was injured in the blast. Disside...
Society
Dáil Éireann held its first public meeting in the Mansion House on 21st January 1919. Events are being held in Dublin today to mark the centenary of the first ever sitting of the Dáil. A joint sitting of the Dáil and the Seanad will take place at the Mansion House, where the Dáil first publicly sat on January 21st 1919. President Michael D Higgins will also deliver a keynote address during today's ceremony. The Mansion House was open to the public over the...
Crime
The 60-year-old pedestrian was pronounced dead at the scene. A man has died after being hit by a truck in Co Waterford. It happened at around 8:15pm last night at Killossera, Dungarvan. The 60-year-old pedestrian was pronounced dead at the scene. His body has been taken to the mortuary at University Hospital Waterford. The male driver of the truck was not injured in the crash. A forensic exam is being carried out at the scene. The road remains closed this...
Society
Garda Commissioner Drew Harris has called the failure to prosecute 3,000 youth offenders a "humiliating professional failure" for the force. He also apologised to all those who were victims of crimes committed by those who were never prosecuted. An internal report into the force's youth referral scheme found that 7,894 cases where youths were deemed not to be suitable for the diversion programme were not appropriately dealt with over a seven-year period. A...
Crime
Victor Marin Del Sol's children spent a year in Irish schools. A Dublin-based Spanish waiter killed his partner and two Irish-born children in a murder-suicide in Poland just days before Christmas. Two Dublin schools have expressed their shock at the news. Victor Marin Del Sol's three children spent a year in schools in Rathfarnham, before they moved to Poland with their mother. The Irish Independent reports that Marin Del Sol flew to Poland to spend time...
Politics
New laws on hold in Dáil to focus on emergency legislation. Ministers will today agree to essentially freeze work on all new laws as they bid to get ahead of a chaotic no-deal Brexit. Just six pieces of non-Brexit related legislation have made it to the Government's priority list for the new term, the Irish Independent understands. This is an acknowledgement that British Prime Minister Theresa May faces a crushing defeat when the Withdrawal Agreement is pu...
Crime
The incident happened on Ballinteer Avenue in south Dublin at around 6pm on Sunday evening. Four people were arrested after a vehicle crashed into a wall after failing to stop for gardai.The incident happened on Ballinteer Avenue in south Dublin at around 6pm on Sunday evening. Three of the arrested men are in their 20s and were held in Dunrdrum garda station while a fourth (juvenile) was held in Dun Laoghaire.Three of the men are set to appear in court th...
Society
Too early to say when hotel on Leitrim-Roscommon border can open, says Minister. The Minister for Justice has said he is “deeply concerned” following a fire at a former hotel on the Leitrim/Roscommon border that was to open as a centre for asylum seekers. The Shannon Key West hotel in Rooskey on the Leitrim/Roscommon border had been due to open shortly as a direct-provision accommodation centre for 80 people. However, on Thursday night, the emergency servi...