Ireland: 2022 Article IV Consultation-Press Release; Staff Report; and Informational Annex
IMF Staff Country Reports, July 7, 2022
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- Ireland: 2022 Article IV Consultation-Press Release; Staff Report; and Informational Annex
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Bibliographic details
- Published: July 7, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400212802.002
Economic rebound and outlook
- The economy has rebounded strongly from the pandemic.
- The outlook is strong, but uncertainty is substantial due to the indirect impacts of the war in Ukraine.
- The impact of the pandemic on borrowers’ financial position has started to dissipate, but uncertainty remains.
Financial sector resilience and risks
- The financial sector weathered the pandemic crisis well thanks to high capital buffers and effective policy support.
- There is a need to address Global Financial Crisis legacy effects on the financial system.
- Policy priority: tackle the factors contributing to high lending interest rates.
Fiscal stance and near-term policy
- The fiscal stance is broadly appropriate.
- Short-term recommendation: two-way fiscal flexibility is needed to balance supporting the economy and containing inflation.
- Contingency guidance:
- If growth disappoints, automatic stabilizers should be allowed to fully operate.
- Fiscal space should be deployed, if necessary, through high-quality measures.
Structural reforms, bottlenecks, and inclusiveness
- Several pre-pandemic challenges remain: housing shortages, infrastructure gaps, social and green investment gaps.
- Need to strengthen multinational enterprises’ inward linkages to broaden growth and make it more inclusive.
- Structural reforms should aim to remove bottlenecks, increase productivity, and reduce inequities.
- Housing policy focus:
- Further strengthen housing supply policies.
- Boost productivity in the construction sector.
- Improve the planning and permit processes.
Content in this bundle
- 1irlea2022001