WITH WARNINGS OF a global recession creeping into the news agenda and Brexit weighing heavy on business confidence, there are concerns that Ireland’s small, open economy is under threat.
Last month, the dreaded US yield curve inverted - historically it goes south when a global recession is on its way. This is on the back of the ongoing US-China trade war that has taken a toll on Germany, Europe’s largest economy, which is now facing a downturn.
Anything that upsets global norms tends to impact Irish growth. However, the latest forecast from accountancy firm EY suggested that even in the face of these external challenges, the level of jobs creation and growth over the last five years puts the country “on a solid footing”.
Even in the event of a no-deal Brexit, the firm predicts the economy would grow, albeit by a measly 1.3%. If the UK manages to exit the European Union in an orderly fashion, EY predicts the economy will grow by 3.3%, down from its previous forecast of 3.3%.
Keeping this in mind, we are asking Fora readers this week: Are you worried about a global recession?