OECD Economic Surveys: Ireland 2020

Economic Overview

The Irish economy has continued to expand strongly, consolidating its post-crisis recovery. Nonetheless, uncertainty remains elevated and legacies of the financial crisis continue to threaten economic resilience. Fiscal prudence is required, given rising fiscal costs from ageing, emerging capacity constraints and international tax policy changes that could weaken tax receipts.

Policy Recommendations

The authorities should broaden the property tax and Value Added Tax bases, ensure environmental costs are better reflected in prices and improve the governance around public spending, particularly in healthcare.

Technological Change and Workforce Development

At the same time, technological change is transforming the Irish economy, leading to new jobs and innovative products that benefit consumers. Further technological adoption by firms will boost productivity if complementary skills in the workforce are cultivated. There is significant scope for greater participation in lifelong learning, which should be encouraged through well-targeted training programmes and ensuring individuals are able to take part, for instance by expanding childcare supply.

Shared Benefits and Policy Revisions

To ensure the benefits of technological progress for the economy are fully realised and shared, policy settings in other areas, such as competition and the labour market, also need to be revisited.

SPECIAL FEATURE: TECHNOLOGICAL DIFFUSION