Ibec forecasts GDP growth of 4.1% this year

Business, Economy | Fri 11 Jan | Author – Business & Finance

Latest Economic Outlook Report from Ibec forecasts employment growth of 2.5% in 2019

Ibec, the group that represents Irish business, published its latest Quarterly Economic Outlook Q4 2018 which forecasts GDP growth of 4.1% in 2019.

A positive outlook is expected for other economic indicators such as employment and consumer spending. However, growth will be weaker than in recent years as Ireland is now at a mature phase of the business cycle with the economy close to capacity and as cost competitiveness erodes. Also, the outcome of the Brexit deal will largely determine the economic fortunes of the country in 2019.

Source: Ibec

Key points from the Ibec Quarterly Economic Outlook Q4 2018 include:

Growth: Ibec forecasts GDP growth of 4.1% this year.

Consumer Spending: Growth of 2.9% in 2019.

Employment: Will grow by 2.5% in 2019. This will create 66,000 jobs.

Wages: Ibec’s HR survey shows that wages are expected to grow by 2.5% in 2019.

 Is expected to be relatively weak at 1.1% for 2019.

Brexit’s impact

Commenting on the report, Ibec’s CEO, Danny McCoy, said:

Ten years on from the financial crisis our globalised business model has delivered an improvement in living standards that many did not think was possible. As a result, the Irish economy comes into 2019 on the back of growing employment, wages, and incomes. Business investment is at record levels and the global footprint of Irish companies has never been larger.

Source: Ibec

Despite the good news though, there are still risk to the economy  and business model. Mr McCoy believe that many firms will face a difficult period in the upcoming months due to sterling weakness and continued Brexit uncertainty. Companies are putting off investment decisions until there is a clearer understanding of what the final relationship between the EU and UK looks like.

Source: Ibec