Economic Insights Economic Insights Economic Insights

KPMG has released its Autumn 2021 Economic Insights publication reviewing the underlying structure of Ireland’s economy as it moves into the recovery phase following the pandemic. The paper analyses the country’s core economic dynamics, focusing on the various components of economic output and the key stakeholders who play a part in enabling our collective prosperity.

The second half of 2021 is seeing the beginning of a major economic recovery. Domestic consumption, private sector investment, and public spending are all playing a role. While consumption is expected to peak in early 2022, investment in the Irish economy will continue growing in the long-term, as Ireland remains focused on its key competitive sectors: ICT, healthcare and life sciences, and agri-food, amongst others. Public spending will decrease, as the Government reduces the deficit and public debt to sustainable levels.

Policymakers are faced with variety of choices for investing in the recovery. There is a need to target these investments wisely in order to achieve a return to pre-pandemic levels of growth and a more resilient post-pandemic outlook. The current capital envelope for the 10-year period 2021-2030 is expected to create additional economic contributions in the range €24-28 billion, which will be vital to the growth of the Irish economy over the coming years.

KPMG has released its Economic Insights publication, the firm’s first Thought Leadership piece on the Irish economy as the recovery from the crisis brought on by COVID-19 begins.

The publication analyses the country’s core economic dynamics, focusing on the various components of economic output and the key stakeholders who play a part in enabling our collective prosperity.

Economic Insights highlights that, while there are clear challenges both domestically and internationally, the country’s economic and social foundations are robust, and some of our key sectors – Agri-food, ICT, Life Sciences and MedTech – will experience increased demand in 2020 and beyond.

For policymakers there will be difficult choices, but positivity around R&D, the Green Economy, and Industry 4.0 can be built upon. The recent agreement on a Draft Programme for Government sets out a framework for recovery, while pan-European recovery programmes offer a chance to focus investment on impacted regions and support for sectors that are most significantly impacted.