EY comments on the Summer Economic Statement

“We are walking an economic tightrope between balancing fiscal prudency and a need to .....

Shane MacSweeney, Partner, Head of Government and Infrastructure, EY welcomes the Government’s Summer Economic Statement:

We are walking an economic tightrope between balancing fiscal prudency and a need to improve living standards and address our infrastructure gap. The Ireland 2040 Delivery Board is a welcomed first step in implementing and delivering our ten-year National Development Plan, but we now need to quickly develop our Major Projects Capital Tracker, prioritising projects based upon a sound economic rationale. Falling off the economic tightrope is not an option - we cannot afford to lose another decade.”

Neil Gibson, Chief Economist, EY commenting on the Government’s Summer Economic Statement said:

The Government’s Summer Economic Statement was a well-crafted exercise in expectation management. Showing sound economic reasoning, the statement highlighted the problems that would be caused by increased government spending, and pointed out the risks of relying on volatile tax receipts. The budget will please economists, but it will come under scrutiny if the recent acceleration in costs cannot be addressed and competitiveness suffers. There is clear logic in spending less when the economy is strong, but as Ireland was not able to make large investments during the lean years, there is a rather long to-do list. This may necessitate a little more pro-cyclical spending than the Government (or economists) would like.”

Annette Hughes, Director, EY-DKM Economic Advisory Services commenting on the Government’s Summer Economic Statement said:

We have consistently read in successive Summer Economic Statements and elsewhere that the government has allocated considerable resources to address the supply constraints in the housing sector. An essential element of our medium-term planning in 2018 should be real progress on the housing supply challenge, if we are to deliver a more inclusive society and attract the talent we need to meet the demands of enterprise. Given the expansion plans of a number of high profile companies, a failure to address this critical issue will jeopardise the very positive labour market developments which are expected to continue to be a driving force of our sustainable economic growth in the medium-term.”

Article Published: 21/06/2018