Minister for Finance Jack Chambers has hailed the strong Q3 results for the domestic economy but warned that Ireland’s economic outlook has become “increasingly uncertain”. In response to the Central Statistics Office publishing the Quarterly National Accounts for the third quarter of 2024, Minister Chambers welcomed strong indicators of economic performance such as modified domestic demand increasing by 1.3 per cent relative to the previous quarter and being up 4.1 per cent on an annual basis.
However, Minister Chambers balanced his optimism by acknowledging that the figures within the quarterly accounts are in the past and that Ireland is vulnerable to instability in the global environment, “While today’s figures are encouraging they are, of course, backward looking. Indeed, the economic outlook has become increasingly uncertain and risks are now clearly titled to the downside with the most pressing risks external in nature. As a small, open and highly globalised economy, Ireland is particularly vulnerable to any deterioration in the external environment.”
In further positive news from the quarterly accounts, Consumer spending was up 1.7 per cent on an annual basis, while GDP grew strongly by 3.5 per cent in the third quarter and increased by 2.9 per cent on an annual basis. In light of these surpluses, Minister Chambers reinforced his belief in resourcing Ireland’s fiscal buffers to safeguard against future shocks, “In particular, we must continue to build up our fiscal buffers, invest in our people and our infrastructure, and ensure the economy remains competitive, this will help ensure that we are in the best position possible to address future challenges.”
Of note for the upcoming Q4 quarterly accounts, last month, Ireland’s corporation tax haul rose to record highs as the Apple windfall taxes continued to flow into the exchequer. Ireland took in a total of €13.7 billion in corporation tax in November, a key month for corporate tax intake. This was an increase of 117 per cent on last year’s intake of €6.3 billion.
As committed to by the main parties of the last governing coalition in Fianna Fáil (Minister Chambers’ party) and Fine Gael, with both now appearing likely to govern together again following the general election results, corporation windfall receipts and the influx of the €13 billion from the Apple Tax ruling will be utilised to resource Ireland’s two sovereign wealth funds, the Future Ireland Fund and the Climate, Nature and Infrastructure Fund.
