Outlook for Ireland remains positive but Brexit risk significant
The Minister for Finance and Public Expenditure and Reform, Mr. Paschal Donohoe T.D., today welcomed the publication by the IMF of its regular review of the Irish economy, the Article IV report.
- The Article IV report is a strategic review of the Irish economy and Government policies. The report sets out the views of IMF staff on the current position of the economy and its future prospects, providing recommendations to maintain continued strong economic performance.
- IMF staff note that the Irish economy continues to be among the most dynamic in Europe, with unemployment nearing historical lows. The outlook for the future remains positive, however, the IMF caution that the impact of Brexit poses a significant external risk. Trade tensions and changes in international corporate taxation could also have negative impacts and the IMF recommend strengthening the resilience of the economy in response to these risks.
Commenting on the publication of the report by the IMF, the Minister for Finance and Public Expenditure and Reform, Paschal Donohoe T.D. said: ‘I welcome today’s publication by the IMF which affirms the continued strong performance of the Irish economy. This annual report provides important insights into the challenges and opportunities we face and allows us to utilise the IMF’s extensive expertise to inform policymaking’.
“While healthy economic growth continues, it is clear that there are significant challenges ahead. Brexit, whatever form it takes, will impose significant costs on the Irish economy. Trade tensions and international corporate tax changes could also have adverse effects. Thankfully we are facing these challenges from a position of strength. With these risks in mind, the Government will continue to implement prudent budgetary policy, building resilience against external shocks, while avoiding domestic overheating of the economy.”
ENDS
17 June 2019
Notes for Editors
During an Article IV consultation, IMF economists visit a country to discuss the country’s economic and financial policies with government and central bank officials, as well as a range of public and private sector stakeholders. The team reports its findings to IMF management and then presents them for discussion to the Executive Board, which represents all of the IMF’s member countries. A summary of the Board’s views is subsequently transmitted to the country’s government. In this way, the IMF aims to ensure that the views of the global community and the lessons of international experience are brought to bear on national policies. Summaries of most discussions are released in press releases and are posted on the IMF web site, as are most of the country reports prepared by the staff.
The Article IV process is a requirement for all members of the Fund and takes place on a periodic, usually annual, basis. It is a long-standing element of Ireland’s regular engagement with the IMF and has a medium to long-term focus. This year’s review took place from 30 April – 10 May.
The IMF Article IV consultation involved a small team of IMF staff visiting Ireland for a two-week period of consultation during which they met the Minister for Finance and Public Expenditure and Reform, Paschal Donohoe, T.D, various Government departments and agencies, as well as a wide range of public and private sector stakeholders.