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Ireland has the most successful recovery in the Eurozone Periphery

Fitch ratings agency yesterday released a report which shows that a divergence has started to develop in the eurozone periphery as the economic recovery in the eurozone takes hold.

The report compares the recent macroeconomic performance of the four largest peripheral countries – Italy, Spain, Portugal and Ireland – with a focus on the divergence and its potential drivers.

It finds that Ireland is the most successful among the four peripheral countries and by most metrics an outlier. According to the report, the recovery and ultimately the growth potential was helped by the high level of openness of the Irish economy.

The report indicates that confidence in the financial sector was boosted by early bank recapitalisation, though the forbearance of NPLs prevailed for a longer period and fiscal consolidation has continued during the recovery.

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Small businesses facing insurance cost crisis warns Small Firms Association

Small businesses are facing an insurance cost crisis which can no longer be ignored according to the Chairman of the Small Firms Association (SFA), AJ Noonan.

Mr Noonan today referenced recent figures which showed that Insurance costs have increased by 29.6% since 2011.

Between 2012 and 2014, the Central Bank has tracked a rise in the frequency of claims and an increase in the average cost per claim of 8% in private motor, 27% in employer liability and 8% in public liability. Mr Noonan has warned that ‘Ireland’s compo culture’ has been allowed to get out of control in recent years.

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Brexit will be the most significant risk for the Irish economy warns Premier Irish law firm

The possibility of a Brexit is probably currently the single most significant risk for the Irish economy and Irish business according to a report by Premier Irish law firm, McCann FitzGerald.

This report was launched at a special panel discussion which featured Chairman of AIB- Richard Pym, Group CEO of Ervia-Michael McNicholas, Former CEO of UK Office of Fair Trading and Chairman of Irish Competition Authority-Dr John Fingleton and Chief Economist at Goodbody Stockbrokers-Dermot O’Leary.

The event was moderated by John Cronin, a partner and former Chairman McCann FitzGerald, who leads the firm’s Brexit Group.

The briefing by McCann FitzGerald is the first of its kind by a major Irish law firm and provides analysis in relation to a number of different legal areas and industry sectors including energy, intellectual property, imports and exports and financial services.

In light of its warning, McCann FitzGerald recommends that Irish companies should establish a review team to consider their business models and arrangements in order to identify legal and business risks, opportunities and steps that should be taken in the event of a vote to leave.

The primary aim of the review would be to identify the principal aspects of the company’s business that would be most affected by Brexit.

Cronin noted that the financial services industry, including asset management and funds, is most exposed of all UK industry sectors to a Brexit.

In relation to Ireland, he said that there may be short and medium term gains for Irish financial services but the longer term position is uncertain and somewhat insecure. However, he suggested that there may be some Irish solutions to a number of potential issues that could arise for the UK investment funds industry.

Article Source: Business World

Irish digital advertising spend hit 340M across 2015

An advertising industry study carried out by IAB Ireland/PwC records growth of 29% in the Irish digital advertising market, with total digital spending reaching €340 mln in 2015.

The 2015 IAB PwC Online Adspend Study Display indicates that advertising had the highest growth rate at 38%, representing €137m in 2015. Display now represents 40% of total digital spend.

Paid-for-Search advertising has grown by 28% year on year and remains the dominant digital format with a 52% share of total online adspend at €176m.

Classified advertising online holds an 8% share of total online adspend at €27m.

Within the Display Category, Social Media Display saw a 72% growth from €28.5m in 2014 to €49m in 2015. Spend on digital video grew by 71% from €14.3m in 2014 to €24.5m in 2015 reflecting the strong commitment of brand advertisers to the video format.

Mobile advertising is a key driver of total digital adspend growth accounting for 81% of the total growth arising from the increase in mobile advertising. Mobile Search accounts for 63% of mobile spend at €89m with Mobile Display advertising representing a 37% share at €52m

PwC predicts 14.6% growth (CAGR) in Irish digital adspend during the period 2014-2019.

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Irish jobs market shows consistency this quarter rather than growth

Morgan McKinley have today released their Irish Employment Monitor for the first quarter of 2016.

The Morgan McKinley Irish Employment Monitor measures the pulse of the Irish professional jobs market by tracking the number of new job vacancies and new candidates within the Republic of Ireland each month.

The monitor shows that the availability of professional job opportunities remains almost constant in the first quarter of 2016 compared to the same period last year.

The volume of professional job opportunities decreased by less than 1%, in the first quarter of 2016 (36,925) compared to the first quarter of 2015 (37,171).

The number of professionals seeking new roles increased by 4% this quarter (24,084)  compared to the same period in 2015 (23,140). IT, Engineering, Supply Chain and Multilingual are the most buoyant sectors to date this year.

The monitor shows the pharmaceutical, food and medical devices sectors continue to drive demand for engineering, procurement and production professionals. Talent shortages remain an issue across the IT sector with Javascript developers most in demand.

Hiring in the Funds sector remains static again this month reflecting global market uncertainty.

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Ibec warns of economic risks to Irish economy if UK leaves EU

According to a new study carried out by Ibec, a Brexit would have a signification impact on the Irish economy.

The report by the business group suggested that the fall-out of a Brexit for Ireland would be far-reaching, as it could hurt trade between the two countries while also creating uncertainty for businesses.

Ibec said that the all-island economy – as well as the shared electricity market – would be negatively affected, while trade with Britain as a whole would be impacted.

A Brexit could also see the value of sterling fall, which would hurt Irish imports and the tourism industry here.

Ibec noted that Ireland could benefit from some foreign direct investment moving from London to Dublin – though it also suggested that Britain would also be freed from some EU rules, which could give it an advantage in attracting new businesses over time.

The Ibec report stated that Brexit would undermine the all-island economy, adding that any disruption to cross border commercial activity could have a very destabilising effect on the governance and economy of Northern Ireland.

Ibec also warned that a Brexit would result in  years of uncertainty as the UK negotiates a new agreement with the EU, which could involve higher costs for business, new customs procedures and regulatory divergence emerging over time. “Trade flows between Ireland and the UK could fall by 20% in a worse case scenario,” it warned.

On sterling, Ibec predicted that after a vote to leave the European Union, the UK currency could weaken by another 10-15% which would bring it close to parity with the euro. This would leave Irish firms selling into the UK market much less competitive.

Ibec also believes that the damaging economic effect of Brexit and the risk of investment flight would likely make the UK aggressively improve their foreign direct investment offering.

Ireland shares a wholesale all-island electricity market with the UK and while the impact of a Brexit might appear benign, Ibec cautioned that it would impact on where stocks of liquid fuels are stored for security of supply reasons.

For more on this article, please visit: RTE Business News