Michael Neary, Partner, assesses the economic outlook for Ireland and the Motor Industry in the year ahead, identifying opportunities and challenges amid the fog of uncertainty.
The Motor Industry is cyclical in nature, both vulnerable to, and benefiting from, economic cycles. Therefore, it is important for the Industry to consider the wider economy of Ireland when planning. The impact of economic cycles can have significant and long term impacts on businesses.
The European Commission expects Ireland to be one of the best performers in the EU this year, albeit activity will shrink due to the impact of the Covid-19 pandemic.
The outlook for Ireland in 2021 will depend on the severity of Covid-19 and the resulting lockdowns which are difficult to predict as the viability of a widespread vaccine is still unknown. Initial results from vaccines are promising; however, there are still a number of issues that need to be determined.