General Industry News

Coronavirus round-up: The Irish economy

Business Post – 07.05.2020

The Irish economy will contract by 8 per cent in 2020 and expand again by 6 per cent in 2021, according to the European Commission's latest economic forecast. The economic uncertainty caused by the Covid-19 outbreak has been compounded by "specific" Irish factors such as Brexit and changes in international taxation, the outlook reported. Ireland's overall unemployment, deficit and debt levels will rise, it said, but there are some consolations, such as the performance of the Irish pharmaceutical and medical sectors. Unemployment is expected to rise to 7.5 per cent, but recover to pre-crisis levels by the last quarter of 2021, the report says. The report says the Euro area will contract by a record 7.75 per cent this year and grow by 6.25 per cent in 2021, while the EU as a whole will contract by 7.5 per cent in 2020.

Exchequer deficit of almost €7.5 billion in April - double that of same month last year

RTE Business – 05.05.2020

The Exchequer recorded a deficit of €7.5bn in April, more than double the deficit of €3.2bn recorded in April of last year. Spending to the end of April was up €2.4bn, or 13.5%, on where it was planned to be, primarily due to Covid-19 related expenditure by the Department of Health and the Department of Employment Affairs and Social Protection. Tax receipts in April were down 8%, or €223m, on the same month last year. Tax receipts in the year to April were down 0.6%, or €86m. Cumulative expenditure to the end of April compared to the same period last year is 23.5% ahead. The impact of Covid-19 on tax receipts has yet to work its way through the Exchequer figures, according to a statement from the Department of Finance.