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Dublin economy continues to grow despite housing pressures

Written by Robert McHugh, on 28th Apr 2016. Posted in Economy

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The fifth issue of the Dublin Economic Monitor was published today. The monitor is a joint initiative of the four Dublin local authorities. It looks exclusively at the Dublin region and tracks fifteen key economic indicators.
 
The monitor looks at data from the height of the boom to the economic crash and the subsequent recovery. Most of these indicators show that Dublin’s economic performance is improving but domestic challenges related to housing and the delayed formation of a new government are problematic for the capital.
 
The report shows that the labour market has improved markedly with the unemployment rate declining from 8.9% to 7.8% and total employment expanding by over 23,000 jobs to reach 608,600 in the fourth quarter of 2015. Employment in the services sector increased by over 14,000 jobs across the year to reach 528,000, the highest level on record.
 
However, the residential market remains in a challenged position with average rents for apartments increasing to peak levels of €1,314 per month. Average house rents also rose by over €100 in the year to stand at €1,431 per month in the fourth quarter of 2015. Total residential price growth in Dublin moderated across the year.
 
Furthermore, the report shows available office space in the capital is in short supply with vacancy rates falling in every quarter since the first issue of the Monitor.  Office rents in the City Centre have increased by 27.9% with an equivalent increase of 41% recorded in the South Suburbs.
 
Senior Economist at Markit, Andrew Harker commented, "The Dublin economy showed further signs of strength at the start of 2016. Output growth remained sharp, despite easing slightly from the end of 2015. There were some divergences at the sector level, with substantial expansions in the services and construction sectors contrasting with a slowdown in growth of manufacturing production."

He added, "Overall, the capital’s economy continues to benefit from improving economic conditions in Ireland, and there was further evidence that the rest of Ireland is at least matching the performance of Dublin. One area where this was not the case, however, was employment. Dublin companies increased their staffing levels at a faster pace than the rest of Ireland, with the outperformance of the capital the largest for a year."

Source: www.businessworld.ie

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