Quarterly Economic Outlook Q4 2019
The Irish economy has now recorded several years of strong, sustainable, growth. This growth has been underpinned by growing business investment, rising employment and wages, moderate inflation, and a rapid improvement in household balance sheets. The coming years are bound to see more moderate growth. Significant capacity constraints in the labour market are now materially impacting on companies' expansion plans. The impact of growing congestion in areas like transport, housing, and childcare are making it more difficult to attract and retain workers. Feedback from members suggest these constraints are now having a binding effect on growth. Trade tensions, and an uncertain global economic environment are also weighing on business decision makers globally. While the decisions of large economies when it comes to investment, tax, and trade, will set the economic backdrop for the Irish economy in 2020 the biggest challenge we face may be one within our own control. Ensuring that we match record private investment with investment in growth supporting public infrastructure will be the defining challenge of the coming years.