Ireland’s economy continued its strong run in 2016 with growth of 5.2% making it the best performing economy in the EU for the third consecutive year. This growth was driven by the domestic economy with consumer spending, the largest component of domestic demand, increasing by 3% annually. Underpinning this was a sustained improvement in the labour market which saw employment rise by 3.3% per annum in Q4.
Early indications are that the robust economic performance has continued in 2017. Annual employment growth accelerated to 3.5% in Q1, its fastest rate since before the economic crash. Meanwhile the unemployment rate fell to 6.4% in April, its lowest rate since mid- 2008. While earnings growth has remained sluggish the tightening labour market will put upward pressure on wages which will ultimately support confidence and the housing market.
Source : Savills