US tariffs of 10% would hit GDP growth in 2026
The growth in the domestic economy would be down 1 percentage point and employment growth would be 0.5 of a percentage point lower, according to the Department's new projections.
The lower level of growth in the employment market is the equivalent to around 25,000 fewer jobs by the end of next year.
The Department of Finance produced two forecasts for the Irish economy today - one which models the effect of tariffs of 10% and one which assumes no import taxes.
The forecast shows that without any tariffs Ireland will grow by 4.1% in GDP terms this year and the domestic economy will expand by 2.5%.
Next year it is forecasting GDP growth of 3.4% and domestic growth of 2.8%.
At a press conference today. Minister for Finance Paschal Donohoe said "we are in a time of immense uncertainty."
He said it was also possible further scenarios could develop in the weeks ahead which could affect Ireland.
He added the "the higher level of uncertaintly the worse it is for global growth."
He said latest income tax figures showing growth of 4.8% in Exchequer Returns published today showed the economy continued to perform well.
On the threatened tariffs on film exports to the US, Minister Donohoe said it was a "cause for concern" for the Irish media sector.
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Agriland
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The Irish Sun
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Ireland's govt hit with €46k rent hike as taxpayer forced to foot €508k ambassador bill after ‘unsuccessful' negotiation
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Irish Examiner
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- Irish Examiner
Irish ambassador's rent sees €46,000 hike after latest London lease extension
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