Economic Overview Autumn 2015

We have Restored the Economy

Jobs

  • 1,300 jobs are being created every week, in 2015.
  • 125,000 jobs have been created since the Action Plan for Jobs in 2012.
  • Unemployment rate is down to 9.3% from a peak of 15.1% in Feb 2012
  • Employment has grown in all 8 regions since the Action Plan for Jobs

Growth

  • The economy has recovered to the same size it was before the crash.
  • We are the fastest growing economy in Europe, with 5.2% GDP growth in 2014, and 6.7% growth in the last 12 months (up to Q2 2015).
  • Domestic demand grew in 2014 for the first time since 2007.

Bond

Yields

  • International confidence is restored. We sold a 10 year bond in October 2014 for a 1.63% yield, compared to 14% yields in July 2011.
  • Regained ‘investment-grade’ status with Moody’s / S&P / Fitch.

We are Repairing the Damage

Deficit

  • The deficit has fallen from €22bn in 2010 to a forecast €4.4bn in 2015.
  • We did not increase income tax and have now started reducing it & USC

Mortgage Arrears

  • The number of primary home mortgages in arrears has decreased by 44,750 mortgages or 31% since the peak in June 2013.
  • This is after the Personal Insolvency Bill in December 2012, the launch of the Insolvency Service of Ireland in March 2013, and the Central Bank’s mortgage arrears targets for the main banks in March 2013.
  • The no. of mortgages in negative equity has halved since 2012
  • .

Banking

Cost

  • FG in government only put €17.8bn into the pillar banks and we will get all this back in time; we put nothing into the dead banks of Anglo / INBS.
  • It was FF who bailed out Anglo and we will not get all this money back But FG have reduced this cost by getting rid of the promissory notes.
  • Only 20% of our national debt is from the banks.  The majority is due to the deficit created by FF, borrowing to fund Social Welfare, Health etc.
  • Only approx €800m of our €7.5bn in interest costs is banking related.