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Youthful Irish economy to further outpace EU-study

Published On:  Thu, Mar 23rd, 2006
Contributed By:  Runway Recruitment Ireland

A young, fast-growing labour force means Ireland's economy can far outpace its European neighbours for another 15 years with growth rates of about 5 percent a year.

Economists at NCB Stockbrokers forecast that projected population declines across much of Europe meant Ireland's already strong economy would look even more attractive in a European context over the next decade.

"The more vibrant Irish economy will stand in stark contrast to developments elsewhere in the EU for a prolonged period," economists Dermot O'Brien and Eunan King wrote.

The former Central Bank of Ireland economists believe natural growth and immigration could boost Ireland's population from 4.1 million now to 5 million by 2015 and 6 million in 2050.

In Ireland, NCB expects the number of people aged between 15 and 64 to grow by 25 percent between now and 2020 and not begin declining until at least 2030.

HUGE IMPLICATIONS

Even without current high rates of immigration Ireland's population is increasing by about 1 percent a year.

Foreign labour, already rising rapidly thanks to Ireland's thriving economy and an expanded EU, is also expected to make a major contribution to Ireland's future prosperity however.

Such growth rates should also help ensure a soft landing for Ireland's thriving property market, NCB forecast, with demand for new housing at about 65,000 a year until 2015 and 55,000 until 2020.

O'Brien said strong population growth and a maturing Irish economy also made it more resilient to external shocks while the presence of foreign multinationals was no longer as important as it had been during the Celtic Tiger boom of the 1990s.

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