Ireland’s economy continues to perform well with total output expanding by 5.8% per annum – a considerably stronger growth rate than the 2% being experienced across the EU as a whole. Underpinning this is the continued improvement of the labour market. Almost 50,000 additional jobs are being created annually. In turn, this has helped drive down the unemployment rate to 6.1%. As a result, average earnings have been rising for three straight years. Greater numbers at work, coupled with increased earnings and modest tax cuts, have led to 8.4% growth in real aggregate disposable incomes over the past twelve months – the fastest growth rate since Q2 2005. Looking ahead, legislation to refund domestic water charges has now passed and payments to almost one million households are underway. It is estimated that 90% of the €173m liability will be refunded before the year is out, a timely cash injection for consumers over the Christmas period. Looking beyond 2017, a further round of tax cuts arising from Budget 2018 will kick in. These measures will add an additional €335m to workers’ spending power next year.
Source : Savills