Dublin has climbed to 2nd place in the 2018 fDi Top 25 European Cities and Regions of the Future, the 13th issue of the Dublin Economic Monitor reveals, knocking Paris into 3rd and leaving it behind only London. This, along with other key economic indicators, including the Mastercard Dublin SpendingPulse, shows that the overall performance of the Dublin economy remains relatively robust. It has been found however, that certain aspects of the economy, such as housing and residential rents, continue to hinder the Capital’s full growth potential.
- Housing completions in Dublin fell to 388 in January 2018 (seasonally adjusted), from 755 recorded in December 2017 (close to a 50 decline year on year (YoY)). The data highlights continued volatility and uncertainty in the housing market. Click for Chart
- Residential rents in Dublin increase to over €1,500 a month (up 5.2% YoY) following 17 quarters of growth in excess of 5.5%, and continue to exert pressure on the Greater Dublin Area in Q4 2017 where a YoY growth rate of 7.5% was recorded. Click for Chart
- Residential property prices register YoY growth in excess of 12% for the first time since May 2015. At 103 index points, the series it now at its highest level since the end of 2008. Click for Chart
- There were an additional 10,500 employees added to the workforce in the quarter with 671,000 people now employed in Dublin. Click for Chart
- Dublin’s seasonally adjusted unemployment rate was 6.4% in Q4 2017. Click for Chart
- The Global Talent Competitiveness Index ranks Dublin 7th for its business and labour landscape, market openness, education and lifestyle. Click for Chart
- The Dublin IHS MARKIT Purchasing Managers Index (PMI) remains well above the 50.0 no-change mark (58.0) in Q1 2018. The quarter recorded the fastest rise in new business since Q2 2015 with new work orders increasing continuously on a quarterly basis since the end of 2012. The rate of job creation at Dublin firms accelerated during Q1 with Private sector employment now increasing in each of the past 22 quarters. Click for Chart
- Public transport trips rose by close to 9% YoY in Q4 2017 with 54.6 million trips (seasonally adjusted) undertaken in the quarter (representing an increase of 4.5 million trips). Click for Chart
- Throughput at Dublin Port in Q1 2018 reached a new high with over 9.3 million tonnes (seasonally adjusted) handled in the first three months of the year. Click for Chart
The Mastercard Dublin SpendingPulse shows that overall growth in consumer expenditure in the first three months of 2018 remains robust (rising by +4.8% YoY) while the US, Chinese and French markets have contributed strongly to growth in total spending by overseas tourists (overall up by 9% YoY).
Speaking at the publication of this issue, Ciara Morley, Executive at EY-DKM Economic Advisory said: “Dublin achieved its highest level of employment on record in the first quarter of 2018 reflecting its continued strong growth. This emerging trend is also reflected in many of the other indicators that we track in the Dublin Economic Monitor. There is, however, persistent upward pressure on house prices and rents which currently present as a risk to the city’s competitiveness. Looking ahead, continued growth is expected in 2018, though attracting talent at a suitable price point will act as a strengthening headwind unless property supply can accelerate.”