- 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.
- 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.
- 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.
- 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.