Ireland: Selected Issues

IMF Staff Country Reports, June 26, 2017

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This Selected Issues paper provides an overview of income distribution and the welfare system in Ireland, with a focus on the crisis and postcrisis periods.
Ireland’s flexible economy and strong social safety net helped mitigate the adverse effects of the property-driven crisis.
Although economic conditions are improving rapidly, lifting employment, ongoing efforts are needed to address the lingering impact on those hardest hit, including the long-term unemployed and unemployed youth.
Consistent efforts are needed to support sustainable and inclusive growth and meet ambitious social targets, including the reduction of consistent poverty to 2 percent by 2020.

Ireland’s flexible economy and strong social safety net were important factors in mitigating adverse effects of the property-driven crisis.
Economic conditions are improving rapidly and lifting employment.
Persistent challenges remain for vulnerable groups:
- Long-term unemployed.
- Unemployed youth.
Meeting social targets requires sustained policy effort:
- Target: reduction of consistent poverty to 2 percent by 2020.

Continue targeted policies to assist those hardest hit by the crisis, with particular focus on:
- Long-term unemployed.
- Youth unemployment.
Maintain and strengthen measures that support sustainable and inclusive growth while pursuing social targets such as reducing consistent poverty to 2 percent by 2020.
Ensure the tax-benefit system and labor policies remain aligned to support disposable income, income distribution, and reduction of income inequality.

Subject: Disposable income, Income distribution, Income inequality, Labor, National accounts, Personal income
Keywords: CR, Disposable income, Europe, Global, gross value added, household debt, IMF staff, Income distribution, Income inequality, intangible operation, Ireland, ISCR, multinational, multinational-dominated sector, Personal income, tax-benefit system