Rapid Rebound of Economy after Covid-19

Goodbody Stockbrokers has predicted that the Irish economy is expected to see a “rapid rebound” after the COVID regulations and restrictions are lifted. In the latest report, the firms have predicted that the economy could grow by as much as 5% this year assuming that the vaccine rollout is as scheduled and efficient. The driving factors behind this predicted surge in economic growth can be attributed to two factors: the nearly €13 billion increase in household savings across Ireland during quarantine and the pent-up customer demand for services and goods.

This trend could be seen clearly in the partial reopening in December, with a huge influx in demand across the market. But with the economy reopening and people’s livelihoods returning to normal, there calls to be a careful movement towards returning to normal. It is currently estimated that around 36% of the Irish workforce are currently reliant on some form of government support. That equates to nearly 900,000 individuals that are vulnerable financially if removed from these programs too forcefully. Government implements for incentives to rehire and retaining the job …

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The Rich Becoming Richer

In the past year, the term “the rich get richer” has been remarkably accurate. We have seen the top 10 richest individual’s personal wealth increase tremendously and even witnessed Elon Musk become the richest person on earth, passing Warren Buffet on the way. This trend has not been exempted from Ireland’s billionaires. Of the 9 billionaires in Ireland, they have seen their collective wealth increase by €3.28 billion in 2020, despite going through the deepest global recession this decade. And to put that into perspective, 1/10 of that additional wealth would be able to pay for the COVID vaccine to be available to every citizen in Ireland.

Internationally, we are beginning to see a larger divide between the rich and everyone else. This move towards greater inequality has only been highlighted during the pandemic. It is said that the worlds’ one thousand richest people were able to recover from their financial losses due to COVID within nine months, while it will take more than a decade for the world’s poorest countries to do the same. And since the majority of …

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International Tariffs Affecting Ireland Marketplaces

With the switch of the presidency in the US, international trade laws are set to change. The most recent being the increased tariff on import of bread products in Brexit and increased costs. These taxes on flour imports are predicted to raise the price of bread in the area by as much as 9%.

The IBEC group has spoken out about concerns in the food and drink sector, speaking to the impact of these new regulations and the origin of said laws. Vital points they bring up include how the deal in the EU-UK Trade and Cooperation Agreement (TCA) that included this rising tariff for flour products will require a derogation for the Irish bakery sector in order to help with these tariffs. When tariffs like these occur, many buyers typically stockpile products to avoid the extra costs, but the shelf life of flour is generally low, lasting around 2 weeks. Meaning that any price fluctuations and their effects on the market will be seen in a very short amount of time.

The impact of the tariff is likely to …

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What does Quarantine’s End Mean for Property Prices?

Dublin property agents predict that local property prices can see as large as a 5% increase as the lockdown regulations are lifted in the upcoming months. Many agencies have reported a large influx of registered potential buyers, some firms even registering nearly tripe the number as the same period in past years. This rush of buyers is largely due to the pandemic putting stops to many families’ plans of setting and signing mortgages. For others, it may be the desire to invest in a discounted property before prices skyrocket. Regardless, the sudden increase in demand for properties is sure to cause discrepancies within the real estate market.

Several factors driving demand include the strength of new mortgage approvals in the last quarter of 2020, and the growing availability and willingness of mortgage-lending rule exemptions of banks to offer to potential borrowers in 2021. There has also been a large group of potential buyers who have recently obtained loan approvals and are potential targets for these mortgage-lending rule exemptions in the past 6 months.

As for the number of properties in …

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What Does the Biden Administration bring to Ireland?

With the inauguration of Joe Biden, an ending of the four years of the highly debated Trump Administration begins. Many people are overjoyed with the change in power, but there is also some doubt. The main focus of Biden, as stated in his inauguration speech is to “restore the soul of America”, but what does that mean and entail for Ireland and our relationship with the US?

The effects of US government policies have long-lasting effects on the Ireland economy. Especially changes in corporate tax code on the US international companies that operate within our borders, employing nearly 160,000 people. These businesses are the case of nearly a €7 billion unforeseen fall of Irish corporation tax receipts over the last half-decade. The Trump administration was a strong advocate for tax reforms aimed to bring said organizations’ operations closer to home in the US. This included nearly a 10.5% charge on global low-taxed income, or otherwise known as the Gilti tax. The Gilti profits tax has been set far too low, and therefore did not discourage US companies to shift their …

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An Upcoming Change in Technology

One industry that is expected to see much change as the administration in the US White House changes out is technology. As not only an industry sector but also as a tool for the public and a policy. The relationship between the government and social media, communication apps, and surveillance technologies in the world have changed vastly during the Trump administration. The sudden increase in the role of live-streaming events, whether they be violent riots and protests, or current events can’t be ignored anymore as we have the power as a society to access information from any time, anywhere just by pulling out our smartphones.

The role of technology during the Trump administration has certainly been darkened and undermined. Technologies and techniques that were meant to publicize and open doors for democracy were equally used for spreading falsehood, fake news, discrediting valid sources, and promoting hatred, violence, and racism. These actions have shown how technology itself isn’t rather bad, but it depends on the wielder. And all-in-all the wider implications of using technology have not been seen. With proper attention …

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What is Open Banking?

Open Banking is generally known as the practice of sharing personal financial information electronically, under secure conditions that are both approved by corporations and by the consumer. In doing so, Application programming interfaces (APIs) allow Third-Party Providers (TTP) to access financial information efficiently which results in smoother, faster, and easier financial processes.

Examples of how Open Banking has already started to become implemented would be budget tracking apps on your device, or even through your bank that could be connected to checking or savings accounts. Other instances where Open Banking has been used when you don’t even realize would be purchases of a home or monthly payments. Technology is becoming increasingly prominent in daily financial transactions, and understanding how this affects your life is essential.

What can Open Banking do for you though? Open Banking is a huge aspect for not only banks but also TPP’s and regulators. It offers more personability and customization to its consumers in managing and borrowing money as well as making payments.

App developers have recruited the use of APIs to create more streamlined and …

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Saving During the Pandemic

Now is a great time to be investing in smart money saving techniques. The recent pandemic in 2020 has not treated many of us kindly, and money may be an issue even as we move into 2021. We’ve composed a shortlist of just a couple of ways you could help yourself financially to not only get back on your feet but also begin thinking of how to use your money wisely!

1: Begin Saving

Everyone should already always have an emergency fund at the ready, but why not go beyond that set a certain amount of your paycheck to be put into savings? According to Retail Analyst Mr. Kantar Worldpanel, nearly a quarter of Irish families regularly shop at either Aldi or Lidl. In that, nearly 75% of families rarely shop at discounter shops. These family-friendly stores could not only give you better, more local products but also be less of a burden on your wallet. Mr. Worldpanel also reports that of the families that shop at Aldi or Lidl, their weekly grocery bill is nearly 20% lower than those …

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Facebook announces own currency

Facebook has recently announced that it will be launching its own currency, with the promise of it being fully operational by 2020. This currency is not exactly classifies as a cryptocurrency, due to the fact that the value of Libra will be backed by a reserve. This is unlike regular cryptocurrencies, whose value is determined by the supply of the currency and other forms of cryptocurrency in the market as well as their individual demands. 

This financial platform is intended to also be regulated by a federation of companies and non-profit organisations through a Swiss foundation.The currency is quickly gaining traction, with investors minimum contribution being $10m. Some companies that have currently invested in this Facebook currency are Visa, MasterCard, PayPal, Uber, Spotify and some venture capital firms such as Andreessen Horowitz. 

Facebook is intending to have this currency be distributed through some existing apps such as Facebook Messenger or WhatsApp. These apps could make it hard to integrate a secure type of funds exchange, and would not provide a viable platform for many businesses to feel comfortable doing business …

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Sunday Business Post – Deposits

This story appeared in the print and online edition of the Sunday Business Post on the 9th of June 2013.

Another banking win is how some heralded the  move by the NTMA to drop their savings rates, in some instances these rates reducing by over 40%. The savings products are distributed on an agency basis by An Post, but was it a decision made due to bank pressure and is there anything a saver can do about it?

To start we need to remember that typical deposit rates in normal nations with healthy banks are generally about one percent or less. Our nation is not typical, our banks are still far from healthy, so we have seen elevated rates for the last five years.

At one point in late 2008 early 2009 you could get over 5% on a one year deposit. And although the banks whine about An Post having state backing and great rates they didn’t do this when their members had the best rates during the financial crisis and only existed due to state support, sauce for …

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