Latest news with #SummerEconomicStatement
Irish Independent
4 days ago
- Business
- Irish Independent
Domestic economy pulled ahead of multinationals growth last year, data shows
Gross domestic product, the standard measure of economic growth that counts in activities of multinationals, expanded at just over half that rate, at 2.6pc. Multinational-dominated sectors of the economy expanded by just 1.5pc in 2024 and accounted for 47pc of total value added in the economy. The globalised 'Industry sector' contracted by 0.5pc in 2024 compared with 2023, a second consecutive year of contraction in the sector. The Information & Communication sector, which incudes multinational tech giants, continued to grow increasing by 6.2pc in the year. There was a sharp contraction in capital investment of 29.5pc reflecting the lowest level of investment in Intangible Assets, things like corporate intellectual property, since 2014. In contrast, parts of the economy that are heavily skewed towards domestic spending grew more rapidly: including the Financial & Insurance sector which expanded by 16.1pc and Real Estate which increased by 6pc. The only domestic dominated sector to contract was Arts & Entertainment which fell by 5.8pc in the year. Government spending on goods and services increased by 5.3pc while personal spending on goods and services (the PCE indicator) rose by 2.9pc Modified Domestic Demand (MDD), a measure of underlying domestic activity that covers personal, government and investment spending, rose by 1.8pc in 2024. Domestic-dominated sectors of the economy expanded by 3.6pc in 2024 while multinational-dominated sectors increased by 1.5pc, the reverse of the long term trend since the global financial crash when investment by multi-nationals has been the key growth driver. The tally for the first three months of 2025 however shows expansion was previously than initial data had suggested but with GDP growing much faster (7.4pc) than modified domestic demand (2pc). The surge in GDP reflects record levels of exports to the US this year which are at least in part understood to reflect a rush to ship products ahead of higher tariffs threatened by US President Donald Trump. The Minister for Finance, Paschal Donohoe, said the CSO figures confirm robust growth in the domestic economy last year but warned it comes ahead of a period of uncertainty. ADVERTISEMENT 'Looking ahead, we are facing into a period of considerable uncertainty in the global economic environment relating to the introduction of tariffs and the rise in geo-fragmentation. Given the globally integrated nature of the Irish economy, this uncertainty will act as a headwind to Irish growth. 'From a policy perspective, we need to continue to calibrate economic and budgetary policies that recognise the changed external backdrop. In particular, this means focusing on boosting the competitiveness of the economy and continuing to build up our fiscal buffers. The Government will set out its updated strategy in the Summer Economic Statement later this month. '
Irish Examiner
03-07-2025
- Business
- Irish Examiner
Exchequer returns show a healthy surplus as budget negotiations approach
The exchequer has recorded a surplus of €4.5bn for the first six months of the year, with wrangling over the budget is due to kick off in the coming weeks as finance minister Paschal Donohoe prepares to publish the Summer Economic Statement. Mr Donohoe is due to publish the Summer Economic Statement later this month and unveil the date on which the budget will be presented to the Oireachtas later this year. However, this budget is likely to be more restrained than previous years, as global economic uncertainty means the Government will likely be taking a cautious approach. During the first half of the year, the exchequer recorded a surplus of €4.5bn — an increase of €1.4bn compared to the same period in 2024. However, once the proceeds from the EU Apple tax case ruling are excluded, the underlying surplus drops to €1.2bn, a fall of €1.9 billion. Gross exchequer revenue for these six months stood at €62.8bn — up by €8.1bn year-on-year. Of this, revenues accounted for €49.5bn — up by €4.7bn. On the expenditure front, the Government spent €58.2bn between January and the end of June, of this, gross voted expenditure stood at €50.9bn, which was €3.8bn higher year-on-year. In the year to the end of June, €3bn was transferred to the Future Ireland Fund and Infrastructure, Climate and Nature Fund last month. During an event last month, Mr Donohoe said in the event of an economic downturn, he would make every effort possible to protect capital expenditure, including using the money set aside in these two funds. During June, €2.9bn was collected in income tax, bringing the total receipts so far this year to €17.4bn — up €700m year-on-year. Corporation tax receipts of €7.4bn were collected during last month, bringing the total for the year to €14.8bn, however, this drops to €13.1bn when the Apple tax case proceeds are excluded. This is still €900m higher than last year and "slightly ahead of profile' for this year, according to the Department of Finance. June is a non-Vat-due month, with just €200m collected. In total, Vat receipts of €11.6bn have been collected so far this year, an increase of €600m. Excise duty receipts during June stood at €500m — up by €100m. Other tax revenue for the year so far reached €13.3bn, with appropriations-in-aid accounting for €8.8bn, and non-tax revenue and capital resources revenue accounting for the remaining €4.5bn. Exchequer debt service expenditure in the year to the end of June was €2.2bn, down by €300m compared to last year. Read More Government urged to show restraint amid €2bn overspend
Irish Daily Mirror
02-07-2025
- Business
- Irish Daily Mirror
Tanaiste 'not convinced' that pension and dole Budget increases should equal
Tánaiste Simon Harris has suggested that the rate for those receiving Jobseeker's Benefit should not increase as much as the pension rate in the budget. It comes as Finance Minister Paschal Donohoe warned that choices will have to be made in Budget 2026 as he remained non-committal on the prospect of tax cuts for workers. In the last budget, Fine Gael and then social protection minister Heather Humphreys had sought to increase the Jobseekers' payment and the pension by different amounts. At one point, it was suggested that the dole could rise by €10 a week and the pension could go up by €15. However, there was pushback by the Green Party, who said that they were 'uncomfortable' at the idea of making a distinction. There was a smaller level of resistance from Fianna Fáil. Senior Government sources told the Irish Mirror that it is too early to make any decisions on any budget matter, noting that the Summer Economic Statement has yet to be published to set out the parameters of Budget 2026. Speaking to reporters after a meeting of the Government Trade Form, the Tánaiste opened the door to a distinction being made between pension increases and Jobseeker increases in Budget 2026. Mr Harris told reporters that he did not want to 'open another budget line' at the press conference. He continued: 'Other than to say I do always think there's merit in not looking at social welfare payments with uniformity across the board. 'We've been talking a lot about college fees in the last couple of days, unexpectedly, perhaps. 'But, roughly speaking, the equivalent of €1.20, €1.25 on every social welfare payment is roughly the equivalent of reducing college fees by €1,000. 'Budgets are all about choice and they're all about balance and there's only so much money in the pot. 'So I'd keep an open mind on that. I'm not convinced that you need to see as significant a rise in the dole as you do on the pension, for example, at the time when our country's in full employment and there's lots of supports out there for people getting into work. 'There's other supports out there for people who can't work for very many good reasons. 'That's my view. We'll thrash all this out in the budget. We've quite a way to go.' At the same press conference, Finance Minister Paschal Donohoe warned that the impact of tariffs will have an impact on the growth of the Irish economy. He suggested that while there will still be budget surpluses, the surplus amount will be revised. He also repeated that while new jobs will still be created, they are likely to be created at a lower level because of the potential impact of tariffs. Minister Donohoe also warned that choices will have to be made as part of Budget 2026 and would not commit to changes to tax rates and bands for workers. He stated that the Programme for Government stated that these things will be reviewed in case of an economic shock and that people's take home pay should increase as a result of actual wages going up. He said: 'In relation to Budget 2026 it is a budget that is going to prioritise the creation and the retention of jobs and keeping our public finances safe while investing in our future. 'We will make decisions closer to the time regarding what is the way in which we will do that. 'Clearly, if the government does decide to make investments and decisions in particular areas, we will then decide there are other things that we cannot do. 'That's the right thing to do and we'll make the case for that on Budget Day. 'But this will be a budget that will contain important measures with regard to investment in our country's future and in terms of people's appetite.' The row over college fees and whether or not they will return to €3,000 following Budget 2026 continued to dominate Dáil proceedings on Wednesdays. In response to Sinn Féin leader Mary Lou McDonald, Higher Education Minister James Lawless noted that it is July and the budget will be announced in October.
Irish Examiner
02-07-2025
- Business
- Irish Examiner
Taoiseach urges fiscal caution as EU rules tighten and trade tensions grow
The Government must be careful with its budgets over the next five years amid new EU fiscal rules and ongoing tariff uncertainty, the Taoiseach has said. Micheál Martin stated that the Government must ensure it does not increase spending to unsustainable levels, in case of a revenue decline. New EU rules, known as the medium-term fiscal framework, will restrict governments from making significant changes to their national budgets unless there are major shifts in the economic outlook. 'Both that, and the idea of temporary corporation revenue, and the uncertainty around the tariff talks and the relationship essentially between the US and Europe, means that we do have to be careful about how we map out the budgetary process for the next five years,' Mr Martin said. However, the Taoiseach identified several key priorities for the coming years, including housing, disability, and child poverty. This comes as Mr Martin announced that the Government would gradually reduce the student contribution fee over the course of the coalition's term, as the ongoing debate around it continues. He noted that the absence of a cost-of-living package has impacted all ministers' budgetary allocations for this year. 'Therefore something has to happen in the budget and in the expenditure allocation to enable the level that fees are at, which is currently at €3,000, albeit the special package brought it back last year and the year before,' he said. 'So clearly, ministers have to get provision, not just in that area, but in some other areas as well, to bring it down.' The Taoiseach said he hoped this effort would begin as part of the Summer Economic Statement process, which is currently underway and will set the spending limits for October's budget. Read More Taoiseach and Japanese prime minister pledge to deepen economic and trade links
Irish Independent
02-07-2025
- Business
- Irish Independent
Mary Regan: Coalition clash over student fees a glimpse of budget tensions that could simmer all summer
On Saturday afternoon, fresh from the Pride parade in Dublin city centre, the Taoiseach, Tánaiste and Ministers for Finance and Public Expenditure sat down for a meeting about Budget 2026 in October. The discussion was a 'stocktake' ahead of what will be a series of economic set-pieces coming down the tracks – the National Development Plan, which is to be published in the coming weeks, the Summer Economic Statement and a look at the general picture for the budget.
