Latest Economic Outlook, and getting ready for Dublin Climate Summit
The latest update to Ibec membership from CEO Danny McCoy
This week, Ibec launched its latest Economic Outlook report, forecasting economic growth of approximately 4.3% in the year ahead. This represents a decrease from the 6.1% that was predicted for 2022 in Q4 2021, largely as a result of the economic impact from rising costs and supply chain challenges across the global economy, accelerated by the Russian invasion of Ukraine.
Despite the downward revision in our forecasts, it is important to acknowledge that our underlying business model remains strong and can deliver growth. However, the global environment will drag on growth this year and next, with rising energy costs, record commodity and transport costs and global supply chain challenges resulting in a slowing of business investment and lower than previously expected consumer spending.
This coming year will be a tight balancing act for policymakers globally. Measures to support households and businesses must be tightly targeted if we are to avoid adding fuel to the inflationary fire. At the same time, premature or misjudged monetary policy reactions could trigger an unnecessary economic contraction.
As I have articulated to you in recent weeks, Ibec will continue its ongoing call for Government to intensify work through the Labour Employer Economic Forum to ensure better coordination and targeting of tax, social welfare and other labour market policies that can address inflationary pressures.
The full report can be downloaded here, while we also have a podcast from the Ibec economics team that gives in-depth analysis of the report’s key findings. In addition, an Ibec webinar with insights from Ibec Director of Lobbying & Influence, Fergal O'Brien, Ibec Chief Economist and Head of National Policy, Gerard Brady, and Ibec Economist Hazel Ahern-Flynn can be viewed below: webinar
Also, this week Ibec Global was once again announced as a European Partner for this year’s Dublin Climate Summit, taking place on May 12th, here in Dublin. Ibec Director of International Business, Jackie King and I will be joining a host of national and international stakeholders for what promises to be an insightful event in how business can continue to play its part in addressing the pressing climate challenges of our time. You can find out more about the event here.
As always, do let me know if you have any feedback. It is always good to hear from you.