Market Pulse Report Q4 2021 - Fitzgerald Power

Economic trends

The Central Bank estimates that up to 167,000 jobs could be created in the Irish economy over the next two years. The economy is expected to grow by 8.7% this year and by 5% next year on back of strong domestic demand.

Wage subsidy

From 1 February 2022 the EWSS will move to a reduced rate of support. Businesses availing of EWSS that were directly impacted by the public health Regulations introduced last December will receive additional support for a further month.

Global economic trends

The International Monetary Fund downgraded its forecasts for global economic growth this year, with their updated growth forecasts expecting global growth to slow from 5.9% in 2021 to 4.4% in 2022. This forecast will be further impacted by the Russian invasion of Ukraine, the threat of which increased in the final quarter of 2021.

Rising prices

Inflation in the Eurozone rose to a new high of 5%, with energy prices remaining the biggest contributor to accelerating prices, rising 26%. Core inflation, which excludes volatile factors such as energy, food, alcohol and tobacco, remained stable at 2.6%

Vaccinations

From the 22nd January the Irish government began to remove all COVID-19 related restrictions. Ireland’s high vaccination rate, and a potentially less virulent new variant, led to the easing of restrictions and the reopening of Irish society.