Quarterly Economic Outlook Q4 2021
The Irish economy is going through a period of exceptional growth despite the backdrop of Covid. Recent restrictions are likely to change the channels and timing of our consumer recovery but ultimately will represent consumption delayed rather than forgone. Income growth and significant savings mean the consumer fundamentals will remain strong in 2022.
Our experience of 2020 and 2021 also shows that most sectors are incredibly robust despite a challenging backdrop. This, in turn, should allow us to confidently support those sectors worst impacted by the path of the virus over the coming months. For 2022, leading indicators now point to labour shortages, limited spare capacity and troubled global supply chains as the greatest barriers to continued growth.
Many of the supply chain and cost challenges which we currently face will remain a challenge well into next year. But they will eventually subside. We face more significant challenges ahead. 2022 will see structural competitiveness challenges such as labour shortages, the low carbon transition, Brexit and OECD tax reform dominate our competitiveness landscape.
As a small open island economy, our ability to withstand shocks into the future will be reliant on helping businesses improve productivity, adopt new technology, innovate and upskill and invest in capital deepening. If we get these right, we can look forward to 2022 and beyond with renewed confidence.
For this this short episode of Ibec Voices we are joined by Ibec's Chief Economist Ger Brady and Economist Hazel Ahern-Flynn.
They present the findings of the Q4 Ibec Economic Outlook, discussing themes including supply chain challenges, competitiveness, skills shortages and Government supports to enterprise.