Savings accounts grew by €13 billion last year - Central Bank

Friday, January 22

Despite the Covid-19 pandemic, an extra €13 billion went into Irish savings accounts last year, according to new figures released today by the Central Bank.

How people will spend this money will be crucial in determining a recovery in the Irish economy for 2020.

Will consumers use their savings to pay off debt or use it for foreign holidays or purchase new cars?

There is also concern that people might use their accumulated savings for house purchases, which might have a negative effect by pushing up prices.

In their latest Quarterly Bulletin, the Central Bank said that growth in the economy should pick up in the second half of this year.

Ireland could achieve growth of 3.8% in the economy for the year ahead, however a lot will depend on the successful roll-out of the Covid-19 vaccination programme.

It also warns that some businesses will not survive the effects of Covid-19, especially after supports from the Government is phased out.

The importance to the contribution of Irish based multinationals is also evident in the figures released today. 

There was a huge increase of 33.6% in the output of the computer sector and pharmaceutical exports were up by 24% from 2019.

However, the bank warns that despite the trade deal struck between the EU and the UK, barriers to trade and the movement of people could hit Ireland's economy over time.

The Central Bank's Quarterly Bulletin can be read  here.