Ireland's economy has weathered the downturn from the Covid-19 pandemic relatively well. Its export-oriented growth model, built around a supportive tax environment and the presence of multinational corporations, has cushioned much of the blow. As a result, the country is likely to emerge from the crisis in better shape than many advanced-economy peers. Challenges remain, however. Multiple national lockdowns to restrict the spread of the virus and Brexit-related uncertainties left their mark on the economic landscape during 2020. Gross domestic product (GDP) growth is expected to cool over the period, while consumer spending has also been hit hard. "Ireland is in its third lockdown. But apart from Taiwan, it will be the only advanced country to have grown in 2020. We have the economy growing by just over 2%, but it's all being driven by net trade," says Martin Beck, lead UK economist at Oxford Economics. "If you look at consumer spending, which best approximates living standards, that is still very weak. So we have that falling almost 11% this year because of the lockdowns and restrictions on social consumption. So the GDP number gives a very false impression of how the economy feels to the average Irish person," he adds.
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