According to a report posted by Ernst & Young (EY), one of the Big Four accounting firms, the Irish economy is seemingly on the rise. This multinational company with HQ in London, England, United Kingdom has been investigating the health of the Irish economy.
Through their research, the company found insight that allowed them to project how the Irish GDP will grow within the current year. As of now, they have estimated that the economy is to grow by 4.1%. This number is consistent with that of the Central Banks, who projected growth of 4%.
These numbers are based solely on the first three months of 2019, and are bound to change with more and more information collection. As of now, their predictions are based largely on substantial corporate tax returns and the addition of new jobs into the market.
Although there are significant positive projections associated with these findings, there are many possible repercussions. One of the most prevalent issues would be the lack of resources available within the Irish economy, but especially around Dublin, to be able to effectively house all of the people that would be moving into urban areas for work.
Without the resources available to provide basic needs, there will be a significant lack in skilled workers that would be interested in taking up these new work opportunities without increased compensation.
If demand for workers is high and supply is low, there will be a significant hike in the wages that qualified workers for these positions will be able to receive. The one issue with this is that the businesses income has not increased with the wages.
Using more of the company funds to pay for more workers could decrease their ability to expand; if this happens, they may just decrease the amount of jobs that are available.
Another issue that may arise is the uncertainty of Brexit. EY notes that because of the high corporate tax returns, many companies looking to leave the UK before they secede from the EU would be highly interested in taking their business to Ireland.
These investments in the Irish economy could soften the blow of Brexit significantly, but there are many additional factors that businesses must consider when rebuilding in an entirely different country such as the consumer market and its taste, fiscal projections and the ability for a company to expand if need be.
