• At the European Financial Forum, CB Governor Gabriel Makhlouf said: “Consumers, businesses and regulators should expect, and plan for, more frictions and divergence.”
• He also discussed the main challenges facing the Irish economy over the next decade.

Brexit

• UK withdrawal from single market represents a major change for the Irish economy.
• Uncertainty is affecting confidence with main trading partners showing weaker growth.
• Yet most recent data indicate Irish economy continued its strong trend growth in 2019.
• Economic impact of new UK trading arrangements will depend on how they differ from current ones, but the new EU/UK economic relationship will lead to greater challenges.
• Businesses, consumers and regulators should use transition period to plan for change.

COVID-19

• Adds to existing global uncertainties and risks, with potential for a negative shock in terms of short term international economic growth, inevitably affecting Ireland.
• Any negative impact on overall world demand will also have impact on Irish exports.
• As a small, open economy Ireland is particularly exposed to disruption in world trade.

CB Activities

• Reviewing key frameworks to ensure they are fit for purpose for the decade ahead, including microprudential, macroprudential and frameworks for consumer protection.
• This will include examination of European frameworks in addition to domestic ones.
• Assessing stakeholder engagement and identifying best practice in order to ensure an inclusive, consistent and comprehensive approach to how it engages, and with whom.