What does Ireland truly stand economically compared to other European powers? (pt. 2)

Much of what the general public and media base their assumptions on a country’s current standings goes with the profits being reported by foreign multinational corporations that reside in that country. These multinational corporations (MNC’s) have tended to flatter Irish’s GDP growth. Since most of these profits are beneficial to foreign parents instead of the Ireland economy, they do not affect international measurements such as GNI. But in recent years, actions taken by these firms have seen effect to not only GNI but GDP as well.

The differences are now that the large capital assets owned by these MNCs are now operating in Ireland. And these Intellectual property assets are often owned by information technology companies. This asset from abroad contribute to GDP not because of the act of acquisition itself, but once these assets are acquired. The deprecation of the asset and land in Ireland affect the statistics. The deprecation of these assets must be included in the GDP and GNI, as that is what the “G” stands for.

In 2015, many of these large MNCs decided to move …

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What does Ireland truly stand economically compared to other European powers? (pt. 1)

Ireland may not seem to one of the most powerful countries in Europe, but there are also many misleading statistics that surround the State. This leads to a misconception of what the residents of the country truly experience and how life in Ireland plays out. Statistics such as per capita GDP, the Human Development Index, and GDP per head are skewed because of international relations within Ireland. Many times people look at one of the previously mentioned statistics and assume everything about a country on that one number. But you cannot presume that off of one indicator. Multiple accounts and indicators will have to be taken into account when determining the overall status and standing of a country.

Looking at Ireland, many individuals are inclined to believe that the numbers do not show the country as prosperous, but if the small city-state of Luxembourg was taken out of the GDP, Ireland would have the highest GDP per head in all of Europe. When looking at the composite representation of a country, GDP and GNI may not be enough to have …

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Negative Rates the Banks are enforcing

In 2020, Irish citizens managed to put nearly €13.4 billion into banks and credit unions, looking to take advantage of savers. This has driven the household deposit total to up to an all-time high of €124 billion. The build-up in these deposits will stay, but banks are continuously looking to pass on charges they face from the European Central Bank.

The reason why banks are looking to charge negative interest is that banks have been paying the European Central bank to hold their excess funds. In a sense, the money earned from these accounts is not being used to lend out to borrowers and generate revenue for the banks themselves. In addition, the ECB rates have become vegetive as a result to encourage more lending in the market to combat the lull in activity in the market due to COVID. This means that you’re essentially paying your bank to hold your savings, but not getting any return by doing so.

Currently, the only organizations that will be paying negative rates would include businesses, pension funds, and credit unions. The rates …

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Financial steps you can take in quarantine

As quarantine drags on into 2021, and there is no certainty when restrictions will start to lift as the COVID vaccines roll out, there are still many actions you can take just to less your bills and spending a little. With how volatile the market and economy is currently, as countries scramble to create and distribute the vaccine. You can create just a little bit of order in your everyday lives by seeing if any of these tips will help your financial situation.

1: Check up on your insurances

If you are one of nearly two million citizens in Ireland that are about to enter your renewal period for your private health insurance, this tip is just for you. Of that two million people, around 75% just allow their policies to be renewed without looking over the fine print or asking their provider any questions. And if you have been doing exactly that for over the last three years, you can almost certainly save some money by looking at alternative options currently. It will require a bit of research and …

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How to manage your finances

2020 has been a hit or miss for many. Financially, there have been many downs and not so many ups. Understanding that we’re comprised a shortlist of things you can do help lessen your financial dependencies.

1: Save on idle spending

Whether this is saving on superfoods, and opting for water instead of those goji berries and chia seeds, or curbing the amount of alcohol you’re purchasing. There are always ways to curb the amount you’re spending at the store. Choosing to buy the products on sale and not the thing you “have” to have. In addition to that, not stocking up due to the pandemic and making sure to shop sensibly. Look at your savings and create an audit of how much you spend weekly and see where you can potentially save a bit.

2: Energy

You can also save big on energy. If you haven’t changed energy providers in the last couple of years, you’re most likely being overcharged. Around 60% of Ireland’s consumers are predicted to never even consider changing their electricity or gas provider. In addition …

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Ways to potentially reduce your tax bill

If you are one of the 706,000 individuals who are due a refund, as announced from the Revenue last week about your taxes, you probably went out and bought yourself a nice glass of wine. But if you’re in the other boat with the 633,000 other people who received the bad news, you’re probably hoping for a miracle to wipe away the tax liability that you now owe.

And to everyone who has been affected by the wage subsidies that the pandemic brought about, there are still ways you can look to in order to lessen the bill just a little. And as a reminder, if you have not claimed either of the two below since 2017, you can still be eligible for the past four years.

1: Flat Rate Expenses

This would be a huge win if you’re eligible and you have yet to claim it this year or in the last four years. These expenses were brought about into the market many years ago in order to be able to cover the many expenses that employees will incur …

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Europe economy may be the slowest to recover

It has been projected by the International Monetary Fund (IMF) that the US and China governments will experience a faster economic recovery time than the other parts of the world. It is predicted that the US and Chinese economies will have fully recovered by 2022 and will have no more than a 1.5% gap from the economic standpoints that would have been projected before the pandemic. Other first-world countries and richer countries will still be short by around 2.5% compared to their pre-pandemic path. While other emerging world economies will be short by around 8%, which is substantially larger than previously anticipated.

The reasons that China and the US are experiencing such short losses during the pandemic is due to the fact that simply they are the largest economies in the world, allowing for a sharp spread in industries and allowing their economies to be highly divergent. China compared to the US, however, is expected to recover even quicker due to the aggressive containment measures taken by the government to limit the spread of the virus. The US, on the …

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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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The Growing Trend of Taking Longer Mortgages

According to a newly done study by the Nationwide Building Society; in the past year, nearly 70% of first-time buyers took out a mortgage beyond the traditional term of 25 years. This starkly compares to how less than a decade ago, that rate was less than 50%. There was a 45% rise in first-time buyers taking out an initial term of more than 25 years.

The longer the mortgage period, the higher the overall costs will be, even with a lower interest rate. The total significant costs for the mortgage can lead to the consumer paying for more than expected. It is calculated that taking a mortgage plan from 25 years to 35 years can have an increase in the total payment of the mortgage by nearly 40%.

While the market house prices continue to rise, the earnings of these first-time buyers have changed little. This creates a significant barrier for first-time buyers to make a deposit. A study shows that having a 20% home deposit nowadays is equal to 104% of the pre-tax income of an average full-time worker. …

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How to get a mortgage in Germany

The rights to a real estate property that are held by the person who owns the property (house, land, apartment etc.) are given to a bank in order to receive other benefits in return. These benefits are usually cash benefits. The mortgage is used in banking as security for loans. The possible amount of the mortgage is determined by the value of the property. Mortgages can be given by banks. In case people need help regarding mortgages there are different branches that can help. Mortgage brokers help people to arrange the mortgage between the borrower and lender and a real estate agent helps buyers and sellers find or sell a property. Getting a mortgage has several advantages such as that the interest rates are generally lower than for other types of borrowing and that a mortgage is easy to repay due to it is repaid little by little on a monthly basis. But a mortgage can also be disadvantageous because the interest rates on mortgages are changing from time to time and can increase suddenly o the borrower has to pay …

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