Economic Overview February 2016
We have Restored the Economy
- 1,000 jobs are being created every week.
- 135,000 jobs have been created since the Action Plan for Jobs in 2012.
- Unemployment rate is down to 8.6% from a peak of 15.2% in Jan 2012
- Employment has grown in all 8 regions since the Action Plan for Jobs
- The economy has recovered to the same size it was before the crash.
- We are the fastest growing economy in Europe with GDP growth forecast to be close to 7% in 2015, after 5.2% growth in 2014.
- The domestic economy and exports are both contributing to growth.
- International confidence is restored. We sold a 10 year bond in February 2016 for a 0.99% yield, compared to 14% yields in July 2011.
- Regained ‘investment-grade’ status with Moody’s / S&P / Fitch.
We are Repairing the Damage
- The deficit has fallen from €18bn in 2010 to a forecast €4bn in 2015.
- We did not increase income tax and have now started reducing it & USC
- The number of primary home mortgages in arrears has decreased by over 50,000 mortgages or 35% since the peak in June 2013.
- Long term arrears (over 2 years) started decreasing in 2015.
- 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.
- 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.