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Ireland’s GDP soared amid COVID crisis; Central bank says GDP grew by 2.5% in 2020

DUBLIN: The Central Bank report shows that Ireland’s GDP has recovered despite the COVID-19 crisis. Central bank says Ireland’s GDP grew by 2.5% in 2020, despite the pandemic crisis and lockdown.

Last October, the Central Bank forecast a 0.4% declines in GDP. Then in the third quarter, GDP grew at an annual rate of 8%.However, the exact figures for the fourth quarter have not yet been released.

According to data released by the Central Bank, Irish exports grew by 4% last year, despite the global slowdown in the COVID-19 crisis. Exports of pharmaceutical products, computer services and business services have strengthened Ireland’s export sector, according to the Central Bank’s quarterly financial report.

As a result, the bank estimated that GDP grew by 2.5% in 2020. One in eight Irish workers is employed by foreign multinationals, including the world’s largest tech and pharmaceutical companies.

Meanwhile, the central bank said GDP growth would be 3.8% this year. The central bank has revised its forecast of 3.4% growth in October, based on the British EU trade agreement signed in December. At the same time, the central bank said that GDP growth is likely to grow by only 1.5% by the middle of this year if tough COVID restrictions continue.

The central bank also points out that international demand fell by 7.1% last year due to the impact of COVID-19 on the multinational sector. However, the central bank said it expects growth of 2.9% in 2021 and 3.6% in 2022. The bank expects the unemployment rate to average 9.3% this year and 7.8% in 2022.

Last October, the government forecast a 3.5% GDP contraction for 2020. However, Stockbroker Davy had predicted that Irish GDP will grow by 3.3% in 2020 and by 4.8% in 2021.

In the context of COVID-19, the central bank warns that increasing people’s personal savings and reducing housing will lead to higher housing prices. Meanwhile, Mark Cassidy, the central bank’s finance director, said a quarter of the previously announced (23,000) home shortages due to COVID-19 restrictions would be in Ireland by 2020-22.

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