General Industry News

Irish economy to shrink by between 0.4% and 1.1% this year, says Central Bank

The Journal– 14.10.2020

The Irish economy has somewhat rebounded since the start of the pandemic but the recovery has been “partial” and “uneven”, according to the Central Bank. The Central Bank’s fourth and final Quarterly Economic Bulletin for 2020 highlights the fact that in many parts of the economy, activity remains well below pre-pandemic levels. Consumer spending and construction activity have recovered strongly since the reopening of the economy. The Covid-adjusted unemployment rate is now expected to average out at 15.1% of the labour force this year — down from 29% in April — before falling to 11.1% in the first quarter of next year. But the Central Bank the Central Bank noted a “strong divergence” between general demand levels at home and the performance of Irish exports abroad.

Several hospitality sector support measures announced as part of Budget 2021

Hospitality Ireland– 14.10.2020                                     

The VAT rate for Ireland's hospitality sector will be reduced from 13.5% to 9% on November 1, and will remain at 9% until December of next year. This is one of several support measures that were announced for Ireland's hospitality and tourism sectors as part of Budget 2021 on Tuesday October 13. The government also announced that businesses that have to close due to COVID-19-related restrictions or that have experienced an 80% decline in turnover will be able to avail of a grant that will capped at €5,000 per week. Additionally, debt warehousing for small and medium sized businesses will be extended for a 12 month period with no interest and a €30 million fund will be administered via the Ireland Strategic Investment Fund.