Royston Carr Asset Management - Brexit and tax reform spell uncertainty for Ireland's economic growth in the coming months.
Online PR News – 24-July-2019 – Taipei, Taiwan – In its recent summer forecast, the European Commission warned that Ireland's economic outlook remains uncertain in the face of Brexit. Citing uncertainty around the outcome of Brexit and particularly how Ireland could be affected by it, Royston Carr Asset Management analysts say it is difficult to predict the direction Ireland's economy could take in terms of growth.
While Brexit continues to be a significant source of risk, changes to the international taxation environment also threaten to affect Ireland's economy.
In addition, a tight labor market and the country's diminishing spare capacity suggest that the Irish economy may be running above its true potential. Royston Carr Asset Management analysts say that the use of short lived overseas business sourced tax receipts to boost domestic demand could cause overheating.
According to the European Commission, the Irish economy is expected to expand at 6.7 percent this year. Royston Carr Asset Management analysts say 2019 should mark the European economy's seventh straight year of expansion with all member countries on track to grow during the course of this year.
Although some economies in Europe are experiencing more difficulties than others, Royston Carr Asset Management analysts say the biggest challenge facing the Eurozone at this time is a weakness in manufacturing caused by political uncertainty and global trade tensions.