Dublin's economy continued to perform strongly in the first half of the year with unemployment at its lowest level since the end of 2007, according to the Dublin Economic Monitor, produced by EY-DKM on behalf of the Dublin Local Authorities.
However, it warns of a significant reduction in tourist spending from UK and German visitors as Brexit fears and economic uncertainty continue.
Dublin's economy overall is performing well with its unemployment rate continuing to improve at 4.6%. The number of people employed in the capital is now 706,000 with an additional 5,800 people added to the workforce in the first quarter of the year.
Average residential rents in Dublin continued on an upward trend in the first quarter with average monthly rents in the capital €1,662, up 8.5% year on year. The monitor finds a positive momentum in Dublin's housing market with commencements outstripping completions.
Ciara Morley, Economist with EY-DKM Economic Advisory said it will be important that Dublin remains competitive and an important factor in this will be a well-functioning property market. "Currently, rental prices are on a strong upward trajectory and even with positive momentum in housing supply it is difficult to see any meaningful reduction in rents being registered before the end of this year."
Dublin Airport is a major contributor to the economy of the capital. Passenger numbers through Dublin Airport reached 8.2 million at the start of the year which was an increase of 10.4% on the same time last year. According to Alpharooms, Dublin has been ranked as the number one tourist destination based on accessibility to transports, hotels and attractions.
A record 58.4 million passenger trips took place in Dublin in Q1 2019. The LUAS is the greatest contributor to passenger growth, accounting for 19.9% of total passenger numbers, compared to 18.1% twelve months ago.
EY's Brexit Tracker identifies Dublin as the most popular choice for financial services to relocate post-Brexit, followed closely by Frankfurt, Luxembourg and Paris.
Steven O'Gara is Senior Economic Development Officer with Dublin City Council and Programme Manager of the Dublin Economic Monitor. Commenting on the report, he said "The Dublin economy has continued to perform really well in spite of the looming shadow of Brexit with strong job creation and positive economic indicators. However, the continuing erosion of our competitiveness as a destination to UK visitors is of serious concern. The tourism sector is a huge part of the city's economic mix, a massive employer and has fantastic potential for growth into the future. But we can see the value of partnerships with companies like Mastercard and the Dublin SpendingPulse as we can track the impact of external shocks and use this information to inform public policy responses."