Positive economic data for Ireland in CSO’s Quarterly National Accounts
The Central Statistics Office (CSO) has published the Quarterly National Accounts for the second quarter of 2021, which show a growth of 6.3 percent quarter-on-quarter (22 per cent year-on-year) in GDP in the second quarter of 2021. The data also shows an 8.4 per cent quarter-on-quarter (15 per cent year-on-year) growth in Modified Domestic Demand (MDD), surpassing the level immediately preceding the pandemic (2019-Q4) for the first time since the start of the crisis. Consumer spending was up by 12.6 percent and construction activity was up by 23 per cent quarter-on-quarter. Sectors dominated by foreign-owned multinational enterprises grew by 3.7 percent in the quarter while other domestic sectors grew by 2 percent.
Commenting on the figures, Minister for Finance, Paschal Donohoe TD placed a greater emphasis on MDD than GDP as a measure of the underlying performance of the economy, stating that its growth was the second highest quarterly growth rate on record, second only to the third quarter of last year, when the economy bounced-back after the first lockdown:
“While I am conscious that there are many risks on the horizon, not least in terms of the unpredictable epidemiology of the virus, today’s positive economic data alongside the robust tax data for August which we are publishing later today, mean that we can approach the forthcoming Budget with a far greater degree of confidence than at any time since the pandemic began.”
New recovery support fund
A new fund was announced this week designed to provide support to Irish companies seeking to adapt their operations and business models in order to remain competitive and return to growth following the effects of the pandemic. The Accelerated Recovery Fund, which is worth €31m, supports eligible companies seeking to achieve an accelerated recovery underpinned by capital investment and/or adoption of a new, more digital approach to deliver enhanced sustainability.
Details of the fund, including eligibility, can be found here. The closing date for receipt of final applications is 29 October 2021, and businesses are advised to contact a Development Adviser for information on how to apply.
Enterprise Ireland’s second Export Compass Series launches
Enterprise Ireland, in association with Local Enterprise Offices, has launched the second in its Export Compass Series. This is a 5-part series of webinars designed to help companies explore ways to overcome the present economic challenges by understanding overseas business cultures, building digital capabilities for selling, and developing customer, distributor, and partner relationships. The webinar workshops will take place between Tuesday 7 September and Tuesday 5 October. Details can be found here.
New funding announced for circular economy projects
Increased funding of €240,000 has been announced for projects across Ireland which had been accepted under the first Circular Economy Innovation Grant Scheme (CEIGS). This scheme, which was launched in April 2021, aims to provide support for projects that work in the circular economy space, and to raise awareness of the need to make the transition.
Creating a ‘circular economy’ is part of the move towards a more sustainable future, with a focus on reducing and eliminating waste and keeping resources in use for as long as possible. Other circular economy work being progressed includes Ireland’s first All of Government Circular Economy Strategy – expected to be published in September 2021 – and the Circular Economy Bill, which will put the Circular Economy Strategy on a statutory footing, and implement many of the actions in the Government’s Waste Action Plan for a Circular Economy. The Bill will involve radical change to production and consumption, limiting single-use products, clamping down on littering, and dumping, among other measures.
Speaking at the announcement, Minister of State with special responsibility for the Circular Economy and Communications, Ossian Smyth TD, commented that change is required at all levels of society to meet the challenge to become circular: “The selected projects will support the drive to develop the circular economy in areas such as sustainable fashion, marine plastics, reusable food packaging and construction.”
Pensions Authority Customer Survey now open
The Pensions Authority is conducting an anonymous online customer satisfaction survey to obtain feedback on the quality of its information and enquiry service. The questions pertain to, among other things, the quality of technical guidance and its website. The survey is live now and will remain open until close of business on Friday, 17 September 2021.
Report on Economic Recovery from Covid-19 and Restrictions in Northern Ireland
Research published by Northern Ireland’s Department for the Economy has documented the consequences of COVID-19 on the economy and society of Northern Ireland with respect to output, businesses, labour market and the wider society, as well as outlining the prospects of recovery amidst current and upcoming risks.
The research found that the ending of the Coronavirus Job Retention Scheme (CJRS) scheme and the Self-Employment Income Support Scheme (SEISS) on 30 September 2021, in tandem with the continued operation of restrictions /mitigations in many sectors –and the possibility of further restrictions – represents the greatest risk to unemployment in the second half of 2021 and into 2022. The research findings include:
- £6.1bn of economic activity was lost from March 2020 to March 2021, with an average of £100m+ of output lost per week;
- over 10,000 businesses were closed/impacted from 26 December 2020 to April/May 2021;
- although businesses in several sectors have shown recovery or adaptation, some industries remain in difficulty, e.g., travel, transport, and other personal services;
- there was a doubling of the Claimant Count during 2020, to around 60,000 people, a furloughing of over 200,000 employments in Spring 2020, with many re-furloughed in late 2020, and tens of thousands of grants were claimed for the self-employed
- younger, lower-paid, and female workers were the most adversely impacted;
- risks remain for the economy, including the risk of ‘scarring,’ i.e. when physical and human capital is damaged by recessions and reduces the ability for an economy to grow and get back to its pre-crisis growth path.
The report found that a return to normality and getting ‘back to business’ provides the best opportunity for economic recovery and renewal and pointed to recent forecasts by local organisations which show optimism for the remainder of 2021 and beyond; however, the report notes that a full recovery will take time.
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