Public Policy Bulletin, 11 November 2019

Nov 11, 2019

In this week’s bulletin, read about the EU’s forecast for Ireland in its recently published forecast, and the IMF’s report on stalling European economic growth.

 

 

“Solid growth subject to substantial uncertainty”, says EU’s economic forecast for Ireland

The European Commission’s recently published “Autumn 2019 Economic Forecast” has predicted an increase in Ireland's growth forecast for this year but warns that uncertainty over Brexit and corporate tax revenue might have an impact on it. The report states that GDP growth is set to moderate amid a weakening external environment, while underlying economic activity is expected to remain strong, driven by household consumption and investment in construction. The GDP in Ireland grew by 6.6 per cent year-on-year in the first half of 2019, well above the euro area average, and is expected to moderate down to 3.2 per cent in 2021.

 

 

IMF reports slowdown of European economy growth

In its latest Regional Economic Outlook: Europe report, the IMF suggests that economic activity in Europe has slowed on the back of weakness in trade and manufacturing. While Europe’s growth is projected to decline in 2019, a modest recovery is forecasted for 2020, as global trade recovers and some economies recuperate from past stresses. They have also predicted that high uncertainty and a no-deal Brexit risk could have a sizeable negative impact on the economies in Europe. Other risks stem from emerging financial vulnerabilities, and geopolitics.

 

 

Read all our updates in our Public Policy web centre.