An “adverse shock” to the Irish economy from Brexit, Donald Trump’s protectionist trade policies or changes to the international tax environment is now inevitable, the Government’s financial watchdog has warned. As a result, it suggested an “earlier-than-planned move” to running a small budgetary surplus may be warranted, particularly if growth and tax exceed expectations this year. Having originally targeted a budget surplus in 2018, the Government is still running budget deficits (spending more than it raises in revenues) despite having one of the highest debt burdens in the OECD. He also pointed out that the Irish economic sectors most likely to be affected were the largest employers. The council said the Irish economy looked set to continue to grow at a rapid pace.

Source: The Irish Times September 06, 2018 22:52 UTC