Economic overview 11 dec 2014

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Update: 11 December 2014

Economic Overview We have Restored the Economy 

Over 80,000 jobs have been created since the launch of the Action Plan for Jobs in 2012; and 27,700 jobs in the last 12 months.

Jobs

Unemployment rate is down to 10.7% from a peak of 15.1% in Feb 2012

Employment increased in 7 of the 8 regions over the last quarter.

GDP rose by 4.9% in the first 9 months of 2014 and the economy is on

Growth

target to meet our Budget 2015 forecast of 4.7% GDP growth in 2014. 

Domestic demand has increased in every quarter of 2014.

 International confidence is restored. We sold a 10 year bond in October Bond Yields

for a 1.63% yield, compared to 15% yields in July 2011.  Regained investment-grade status with all 3 main ratings agencies.

We are Repairing the Damage  The deficit was over €22bn at the start of 2011, but by the end of 2015 Deficit

it will be reduced to less than €5bn.  We did not increase income tax and have now started reducing it & USC  The number of primary home mortgages in arrears has decreased by 17.5% since June 2013. This is 5 consecutive quarters of decline.

Mortgage Arrears

 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 gross banking cost of €64.1bn has been reduced to a net €40.6bn after sales, guarantee income and value of our bank stakes are included.

Banking Cost

 FG in government only put €17.8bn into the banks and this was all into the pillar banks, not the dead banks of Anglo / INBS.  Our national debt is €204bn, so the €64.1bn due to the banks is not its main cause, rather it was the day to day deficit left behind by FF.


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