Category: Weekly Round Up
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Weekly Round Up
Irish GDP rebounds more strongly than expected in Q3
Irish GDP bounced back by 3.5% in Q3 2024, more sharply than we had expected, and following contractions in five of the past six quarters. The upshot is that we will now likely have to revise up our forecasts for both Irish GDP growth and modified domestic demand to zero and 3% respectively (from the […]
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Weekly Round Up
Irish banking lending growing durably again
Today’s Money and Banking statistics show Irish household deposits continue to grow robustly, up 4.1% in the year to October to €159bn. Lending to households was up 2.8% to €103bn, split between 2.6% growth in mortgage lending to €85bn and a 3.6% rise in other household lending to €18bn. Despite weak housing market liquidity, the […]
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Weekly Round Up
Irish employment up 1.4% in Q3 2024 to 2.78 million
This week’s Labour Force Survey (LFS) indicates that employment grew rapidly, by 1.4% during Q3 2024 to a fresh record high of 2.78 million, up 3.7% on the year. This has been facilitated by net migration, driving a similar sharp 3.5% gain in the labour force over the same period. Hence, despite exceptional job creation […]
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Weekly Round Up
Markets take benign view of Trump Presidency
Equity market gains and expectations the Fed will be more cautious in cutting official interest rates suggest that whilst investors expect fiscal stimulus and pro-growth deregulation from the new Trump administration, they are not, for now, pricing in a damaging global trade war. On that point, the Washington based Peterson Institute has estimated Trump’s proposals […]
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Weekly Round Up
UK Budget leaves difficult questions unanswered
Yesterday’s UK Budget left many questions unanswered. The additional £70bn of public spending will provide a stimulus to the UK economy in 2025, even after £40bn of tax rises. The Office for Budget Responsibility estimates the net £30bn giveaway (1% of GDP) will add 0.5 percentage points to GDP growth in 2025, but the overall […]
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Weekly Round Up
PMIs add to concerns on health of Euro Area economy
This week’s composite PMI at 49.7 in October, served to accentuate fears on the Euro Area’s growth prospects for 2025. In this context, the ECB is expected to revise down its projection for 1.3% GDP growth in 2025 so markets are fully pricing in a further 25bp rate cut at the December 12th policy meeting, […]
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Weekly Round Up
Evidence UK inflation pressures easing hits sterling
Markets had expected the Bank of England to lag behind other central banks in cutting rates through to the end of 2025, mainly due to evidence of persistent inflationary pressures. However, this week saw both UK private sector regular pay growth (4.5%) and CPI inflation(1.7%) ease. Hence, investors now expect the Bank of England to […]
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Weekly Round Up
MyHome Asking Price Inflation 7.5% in Q3 2024
The MyHome report, in association with Bank of Ireland, was published this week. Asking price inflation accelerated to 7.5% in Q3 2024, a two-year high. Perhaps ever more striking were data showing transactions in September were being settled on average 8% above the original asking price, and for one-in-seven homes, 20% or more above, illustrating […]
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Weekly Round Up
Budget 2025 delivers €10bn package
Today’s Budget for 2025 largely stuck to the script. The Government still plans the €8.3bn of spending rises and tax cuts it flagged in the Summer Economic Statement, but also implemented a fresh €2bn ‘cost-of-living‘ package that will hit households in Q4 2024. Income tax cuts worth €1.6bn will also boost disposable incomes at the […]
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Weekly Round Up
Irish economy beginning to feel competitiveness pressures
This week we published new Irish economic forecasts; downgrading projections for both GDP(-1%) and modified domestic demand (2.3%) growth in 2024, but mainly on the back of statistical distortions and volatile data. The bigger picture is that Ireland’s exceptional pace of employment (2.7%) and population (1.9%) growth has continued in H1 2024, ahead of our […]