Given the strong pace of growth in the Irish economy, this research assesses the capacity of the Irish economy to meet future expected activity in the construction sector. At present, it would not appear that the Irish economy is unduly constrained in terms of labour market and financial sector developments.
The analysis leads to the following general conclusions:
The Irish economy would not appear, at present, to be unduly constrained in terms of labour market and financial sector developments. However, it is clear that a significant increase in housing output will result in employment levels in construction returning to levels seen in the run-up to 2007. Such an increase in activity levels will also result in a sizeable increase in the provision of credit by domestic financial institutions. In that regard, the presence of macroprudential policy is imperative in preventing the build-up of another domestic credit bubble.
The ESRI works towards a national vision of ‘Informed policy for a better Ireland’. This means producing high-quality analysis to provide robust evidence for policymaking, with the goals of research excellence and policy impact.
The ESRI produces research that contributes to understanding economic and social change in the new international context and that informs public policymaking and civil society in Ireland.