Consumer spending set to hit €111bn in 2020
Consumer spending in Ireland is forecast to top €111 billion this year, as the consumer economy emerges from a so-called ‘lost decade’.
The latest Consumer Market Monitor from the Marketing Institute and the UCD Smurfit Graduate Business School says consumer demand has remained resilient in recent years despite the threat of Brexit.
It forecasts a continuation of this trend in 2020, due to further increases in employment and rising wages.
The monitor expects 70,000 more people to join the workforce in this year and the next, with wages predicted to grow by 4% each year.
That will push disposible income in the country to €120 billion this year, compared to €117 billion in 2019.
Household spending will rise by a similar amount – with a monitor forecast of €111 billion this year compared to €108 billion in 2019.
The monitor also reports on improving household wealth, largely due to rising property prices, while consumers are also increasingly taking on debt to support their spending.
However it says borrowing is not a major contributor to recent spending, unlike during the Celtic Tiger years, with the ratio of debt to disposible income continuing to fall.
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