Economic confidence rebounded by 5% to pre-pandemic levels in the first three months of the year having suffered dramatic falls in 2020, according to research from the Association of Chartered Certified Accountants.
The survey of accountancy practitioners found a substantial increase in confidence with ACCA stating that the outlook had considerably improved in line with the vaccine rollout and the impacts of the pandemic easing.
Ireland's level of economic confidence (+34) was the highest in Europe, 10.2 points higher than the Western Europe average (+24) and 3.2 points higher than the neighbouring UK (30.8).
The report 'Global Economic Conditions Survey' jointly published by ACCA and Institute of Management Accountants, found that Irish Economic confidence was significantly higher than the average for 2020 and the last time it reached these levels was 2016.
Caitriona Allis, Head of ACCA Ireland said the growth in confidence in Q1 represented a changing economic picture and it aligned with figures released by the European Commission in February highlighting that the Irish economy grew by 3% in 2020, making it the only Eurozone economy to do so.
"The responses have showed a growing confidence in the economy and consumer spending, which reflect the positive impact that the vaccine rollout and future plans for the easing of restrictions have had. Confidence was further buoyed by welcome GDP figures which highlighted economic growth in 2020 despite the adverse impact of the unprecedented lockdown," Ms Allis said.
"With the announcement that 80% of the Irish adult population will be vaccinated June, there is a renewed sense of optimism that we will see further improvements in economic confidence as we move through the year with the levels of fiscal stimulus from the government and the EU continuing to play an important role."
"The global picture very much mirrors what we have seen in Ireland, with growth in confidence in line with the approval and deployment of vaccines which have dramatically improved prospects of the global crisis coming to an end."
