Financial Services Ireland


Economic Eye: Spring 2021

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The EY Economic Eye: Spring 2021 Forecast provides an economic analysis of the all-island economy across the Republic of Ireland and Northern Ireland.

It is currently the only all-island forecast of its kind. The report contains detailed forecast and analysis of the all-island economy, highlighting growth forecasts, the labour market, wages, trade, investment, government spending, business and sectoral issues and more. Economic Eye also focuses on global and political issues, such as trade wars and Brexit and the implications for both jurisdictions.

Created by Professor Neil Gibson, EY Ireland Chief Economist and the team at EY-DKM Economic Consultancy, Economic Eye is based on the latest all-island forecasts and is a leading source of up-to-the-minute economic analysis.

Recovery – but at what price? Economic Eye Spring 2021

It has been an extraordinary year across the island of Ireland. Covid-19 and Brexit have brought levels of disruption and required policy responses that are unique in peacetime.

Over one-third of the workforce required government support during the year and both the Republic of Ireland (ROI) and the UK have experienced a sharp rise in their national debt, both of which are projected to rise further in the first half of 2021. Over the course of the last 12 months, close to 7,000 people have lost their lives to Covid-19 on the island and almost every business and household has been impacted. The complex health, economic and social impacts of the virus have presented unique challenges across the world and increased the focus on major societal questions relating to how we live, work and socialise.

In brief:

  • The headline data appears to tell a story of two economies. Republic of Ireland (ROI) recorded a remarkable 3.4% growth in 2020 compared to an estimated contraction of 10.1% in Northern Ireland (NI).
  • ROI’s strong performance reflects the strength of its export base, which is dominated by pharma, ICT and agri-food – all strong performers during the pandemic.
  • The sustained period of low price inflation may be over.

Download the Spring 2021 Economic Eye report below, and don’t hesitate to reach out if you have a question.

Thought Leaders

Neil Gibson

EY Chief Economist

Graham Reid

Head of Markets