Why the timing is right for Ireland

Why the timing is right for Ireland
Article contributed by Darragh Everard
Written on 11 February 2016

Is it a good time to return to Ireland?

The EU Commission certainly thinks so. Ireland has retained its status as the European Union’s fastest-growing economy, according to European Commission forecasts published recently. This has led to and will continue to lead to an increase in employment across the country, most notably in Dublin and other major cities. Ireland is now experiencing a skill shortage in certain areas particularly across IT, Engineering and Accounting. It is also envisaged that there will be marked increase in Construction related roles in 2016.

Since opening in August 2015, The Andersen Partnership has seen an increase in demand for both accounting and insurance professionals with overseas experience. As companies in Ireland are now in a position to take on extra resources they are keen to see how the rest of the world is doing things, meaning that candidates returning from places like Australia, the UK, Canada etc....are of interest to hiring managers, keen to breed new ideas into resurging teams. 

The EU Commission’s triannual analysis of the EU’s 28 economies predicts that Irish gdp (gross domestic product) will grow by 4.5 per cent this year, before slowing to 3.5 per cent in 2017. Following growth of 6.9 per cent in 2015, Ireland continues to be the fastest-growing economy in Europe. The projected growth rate of 4.5 per cent in 2016 leaves Ireland just ahead of Malta and Luxembourg in terms of gdp growth, with 1.8 per cent growth forecast in the euro zone’s largest economy, Germany, 1.3 per cent for France, and 2.1 per cent in Britain.   The European Commission expects Irish unemployment levels, which came in at 9.4

The European Commission expects Irish unemployment levels, which came in at 9.4 per cent in 2015 to continue to fall to 8.5 per cent this year and 7.8 per cent in 2017. In its analysis of the Irish economy, the Commission said that Ireland’s economic fundamentals are “robust”, but it warns that the government debt ratio, though declining, “remains very high.” It notes that Ireland is “particularly exposed” to possible deteriorations in the external environment which could dampen exports, while the economy remains vulnerable to interest rate moves and changes in the operations of multinationals.   While noting the unexpected increase in tax-take last year as the economy rebounded, it highlights the fact that two-thirds of that better-than-expected tax intake came from corporate tax.   

The good news is that domestic demand is now driving gdp growth. Noting the “subdued rate of consumer inflation” last year, the Commission states that house prices and rents are forecast to grow at moderate rates, contained by the macro-prudential policies of the central bank and government plans to address supply shortages.   

For more information on the Irish market contact Ireland’s Country Manager, Darragh Everard at deverard@walkerandersen.com

 

Walker Andersen - It's all about time