L ATEST DUBLIN ECONOMIC DATA
S&P GLOBAL DUBLIN PMI
MASTERCARD SPENDINGPULSE
CASTING AROUND FOR A CLEAR
PICTURE ON THE ECONOMY
SEPTEMBER 2023 ISSUE 34
in this issue
Highlights
Dublin’s unemployment rate remained stable at 5% (SA) in Q2 2023, as employment reached new heights.
Business activity in the Capital remained in expansion territory as the services and construction sectors grew, but the manufacturing sector contracted.
The value of Dublin consumer retail spending reached a new index peak of 150.3 as growth rates of 1.1% QoQ and 4.7% YoY (SA) were recorded.
The supply pipeline for Dublin’s housing market strengthened in Q2 with construction commencing on over 3,500 units, reflecting growth of more than 30% both QoQ and YoY.
Foreign Direct Investment into the Dublin economy increased by 4% QoQ in the quarter, yet remained down by 55% YoY.
Dublin Airport’s passenger numbers exceeded prepandemic levels for the first time in Q2 2023.
Welcome to the September 2023 issue of the dublin economic monitor
The Dublin Economic Monitor is a joint initiative on behalf of the four Dublin Local Authorities, and is designed to be of interest to those living and doing business in Dublin or considering locating here. The report is produced by Grant Thornton with inputs from S&P Global and MasterCard. There are two special feature articles this quarter, both of which mark 50 years since Ireland’s accession to the European Economic Community. The first is from Dan O’Brien, Chief Economist of the Institute of International and European Affairs, and focusses on Dublin as a Transatlantic economic hub. The second article is by Noelle O Connell, CEO of European Movement Ireland, and demonstrates how the European Union has benefitted the Dublin economy.
The Monitor is divided into the following themes for Dublin:
Economy
Business Developments
Retail
Hospitality
Labour Market
International Rankings
Housing
Transport & Travel
For more data and insights see: www.dublineconomy.ie
The next edition will be published in December 2023.
www.dublineconomy.ie
@DCCEconDev
This
error, deficiency,
Front cover photograph courtesy of zipit.ie
document provides general information on the Dublin economy. It is not intended to be used as a basis for any particular course of action or as a substitute for financial advice. The document is produced independently by Grant Thornton and Packed.House; the views and opinions expressed are those of the relevant author, and do not necessarily reflect the views of the Dublin Local Authorities. The Dublin Local Authorities disclaim all liability in connection with any action that may be taken in reliance of this document, and for
any
flaw or omission contained in it.
Dublin City Council South Dublin County Council Fingal County Council Dún Laoghaire Rathdown County Council
2 //
WELCOME
Casting around for a clear picture on the economy
There has been no shortage of economic insight released since the last issue of the Dublin Economic Monitor. At a global level, words such as ‘stabilised’ and ‘fragile’ are being used to capture the overarching sentiment for an economy that is probably over the worst of the inflation crises but one where consumers continue to experience significant real term declines in wages. World growth is expected to be 2.7% this year and 2.9% in real terms next year, according to the OECD. A note of caution that tempers the optimism is that, if achieved, these growth levels are below the 3.4% average growth rate achieved between 2013 and 2019.
Monetary Policy Tightening
The loosening grip of inflation over the economy that was referenced in the previous issue of the Monitor has continued. The OECD projections show inflation falling throughout the rest of this year and all of next year for all major economic areas. Inflation in the Euro Area is expected to be 3.2% by the end of 2024. Accompanying lower inflation rates, real wages are projected to stop declining in most OECD countries. Key concerns do remain at the global level. One such concern is that inflation could be more persistent than expected. Significant additional monetary policy tightening may then be required to lower inflation. There is a risk of swinging too far on monetary tightening and pushing global economic performance lower, especially as the impact of the monetary policy tightening that has already occurred is not fully known at this point.
Exceptionally Strong Labour Market Performance
Switching to the Irish performance, the Central Bank’s Quarterly Bulletin for Q2 2023 is anticipating that growth in the domestic economy this year will be 3.7%, slightly stronger than previously expected. Previous expectations were for growth of 3.1% this year. Behind this more optimistic view lies a labour market that continues to post an exceptionally strong performance (unemployment is expected to average 4 per cent this year), stronger building and construction figures, and a resilient consumer.
The extent to which consumers remain resilient is debatable. While Bank of Ireland’s Spending Pulse records a 3% increase in Bank of Ireland debit and credit card spending in July compared to June, the Credit Union Consumer Sentiment Survey (in partnership with Core Research) has noted a decline in sentiment in August. This is the first decline in five months and reflects a consumer mood that has been dampened by the
Forecasted annual % change in Modified Domestic Demand
continuing cost of living pressures and negative news on tech jobs. In truth, the miserable weather in July cannot be ruled out as a contributor to consumer sentiment. With specific regard to the nine interest rate increases in a row, the sentiment survey sought views on how this has impacted household finances. Roughly two out of three Irish consumers (63%) believe ECB rate increases have had a negative impact on them. More than half this group indicated that the impact has been ‘very negative’.
The economic ‘noise’ is making it difficult to get a clear read on the future, or indeed, the current economic context. Helpfully, the Economic and Social Research Institute (ESRI) is providing ‘nowcasting’ – a flash estimate of domestic growth produced by the institute each month. The ESRI states that “while June saw a further tightening of financial conditions and more negative business sentiment indicators than 12 months ago, there were strong improvements in retail sales as well as an increase in industrial production from 12 months ago. Our final nowcast estimates MDD [Modified Domestic Demand] for Q2 2023 to be 3.4% above its level in Q2 2022, up from the 3.3% estimate last month."
Forthcoming Budget 2024
Difficulties in getting a precise read on the economy aside, as the year progresses, attention turns to the Budget and clarity that will emerge in the weeks ahead around the various expenditure and tax measures the Government will take. Tax revenue amounted to €83.1 billion last year, its highest level ever. The strong performance of tax receipts has continued into this year - tax revenue in the year to the end of July stood at €47.8 billion, up by €4.3 billion or 10 per cent on the same period in 2022. While there is a recognition that some of this performance is due to potentially unsustainable corporate tax receipts, the performance does enable Government to proceed with a 2024 budgetary package of additional spending of €6.4 billion including €1.1 billion in tax measures, as set out in the Summer Economic Statement. For an economy that is now facing into capacity constraints in key areas such as labour and housing, the hope is that the Budget shifts the dial on delivery.
// 3
2022 2023 2024 2025 +8.2% +3.7% +2.5% +2.5%
ECONOMY
SOURCES: CENTRAL BANK, ESRI, OECD
Tech Sector Contributes to Commercial Property Concerns
A Mixed Quarter for Dublin’s Labour Market
A mixed year for the Dublin labour market continued into the summer period as ‘full employment’ remained, but further job losses were announced in the technology and consultancy sectors. Facebook owner Meta announced 490 jobs would be cut from its international headquarters in the Capital. The layoffs are for full-time staff in finance, sales, marketing, analytics, operations and engineering roles. Also in the technology sector, Salesforce – which recently opened a new campus on the north quays – announced that a further 50 jobs would be cut in its sales and customer success teams.
Reverberations from the global technology sector slowdown continue to be felt in the wider Dublin economy. Consultancy and outsourcing firm, Accenture, which reduced its Irish headcount by 400 people earlier this year, is seeking a further 890 redundancies from its workforce. While the rationale for such cutbacks was not stated by the company, which has sizeable office spaces in Grand Canal Dock and Cherrywood, it is understood to be related to cutbacks across technology giants over the past year. Details on which roles will be impacted were not released but the Dublin workforce is likely to be significantly affected.
There was more positive news elsewhere in the Dublin economy in Q2, with offshore wind energy consultancy firm, Gavin & Doherty Geosolutions (GDG), announcing plans to create up to 500 jobs over the next five years. The company intends to establish an engineering hub to serve growing demand domestically and internationally with new jobs to be created in engineering analysis, numerical modelling and offshore design. Technology company, ServiceNow, also unveiled plans to create 400 new jobs at its Dublin office over the next three years. The expansion, which will double the company’s presence in the Capital, will mainly focus on digital sales, engineering, and research and development as part of the company’s growth plans for Europe, the Middle East and Africa.
Commercial Property Concerns
The technology sector slowdown has also contributed to weakening activity levels in the Capital’s commercial property market. In tandem with hybrid working,
reduced technology sector demand for space has led to rising vacancy rates in recent months. CBRE data indicates that the overall vacancy rate in Dublin increased from just over 8% in Q2 2022 to 13.6% in Q2 2023. The Grade A vacancy rate also increased sharply, from over 6% to 11.2% in the period.
WeWork, one of Dublin’s largest individual tenants of commercial space, is a prime example of the issues facing the property market globally as it has flagged ‘substantial doubt’ about its ability to continue operating. The coworking space company which operates at four locations in the city – including the former Central Bank of Ireland building on Dame Street and the Dublin Landings 2 building in the Docklands – stated that it would be seeking to reduce rental costs and negotiate more favourable leases over the next 12 months in an effort to remain operational.
Dublin Office Vacancy Rates
4 // Business Developments
Reverberations from the global technology sector slowdown continue to be felt in the wider Dublin economy.
SOURCE: CBRE. CITY CENTRE SOUTH SUBURBS 0% 5% 10% 15% 20% 25% Q2 13 Q4 13 Q2 14 Q4 14 Q2 15 Q4 15 Q2 16 Q4 16 Q2 17 Q4 17 Q2 18 Q4 18 Q2 19 Q4 19 Q2 20 Q4 20 Q2 21 Q4 21 Q2 22 Q4 22 Q2 23
Dublin Business Activity Remains in Expansion Mode in Q2
The midpoint of 2023 saw the economic trends amongst Dublin private sector firms soften somewhat. While still marked overall, upturns for activity and new orders eased from the previous quarter and employment growth was the least pronounced in over two years.
The Dublin Purchasing Managers’ Index (PMI), which tracks business activity in the Capital, remained in expansion mode in Q2 2023. A PMI reading of 54.9 was recorded in the quarter, substantially exceeding the 50 mark which separates growth from contraction. The rate of expansion was marginally weaker than that recorded in Q1 (55.5) but remained significantly stronger than the equivalent rate across the Rest of Ireland (51.4) in Q2.
The services and construction sectors were critical to growth in the quarter, but manufacturing remained in contraction which is of concern. Index readings of 56.8 and 58.7 for services and construction respectively indicated continued strong activity levels amongst businesses, yet manufacturing output remained at a low ebb (46.6) in what was a fourth consecutive quarter of reducing output. Similar outcomes were recorded across the Rest of Ireland in the quarter, except in the case of construction where output contracted in Q2 (48.7) after a positive start to the year.
Across the Dublin economy as a whole, new orders –which signify businesses’ project pipelines – recorded a second consecutive quarter of expansion with an index reading of 54.8. This was broadly stable YoY and built on an expansion in Q1, following a disappointing final quarter of 2022. The rate of growth in new orders in the Capital was faster than that recorded across the Rest of Ireland in the quarter (52.8).
Job creation amongst Dublin businesses also continued to grow in Q2, thus contributing towards the current strength of the labour market, but at the slowest rate (51.8) in two years. This was a notable outcome, and was in contrast to the Rest of Ireland where employment levels expanded at a swifter rate (53.7) when compared to Q1.
// 5 Business Developments
Overall Dublin S&P Global PMI (SA) Dublin Rest of Ireland 20 30 40 50 60 70 Q2 03 Q2 04 Q2 05 Q2 06 Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 sa, 50 = no change Increasing rate of growth Increasing rate of contraction
Overall PMI New Orders (SA) Dublin Rest of Ireland 20 30 40 50 60 70 Q2 03 Q2 04 Q2 05 Q2 06 Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 sa, 50 = no change Increasing rate of growth Increasing rate of contraction Overall PMI Employment (SA) Dublin Rest of Ireland 20 30 40 50 60 70 Q2 03 Q2 04 Q2 05 Q2 06 Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 sa, 50 = no change Increasing rate of growth Increasing rate of contraction
Value of retail spending in dublin reaches new heights
MasterCard Total Retail Sales Index (SA)
The value of retail spending amongst consumers in Dublin continued on an upward trajectory for a ninth consecutive quarter in Q2 2023. A new index peak of 150.3 was reached in the quarter as growth rates of 1.1% QoQ and 4.7% YoY (SA) were recorded. Inflation, which remains at high levels, was a likely contributor, along with strong domestic demand.
Entertainment spending was central to the overall QoQ growth in Q2. An expansion in this category of 4.7% QoQ is reflective of the robust performance of hotels, bars and restaurants since early 2022 – especially as international tourism has been rejuvenated postpandemic.
Growth also accelerated in discretionary and household goods sales in the quarter, with respective QoQ expansions of 1.5% and 1.4%.
Necessities spending also remained on an upward path but the rate of growth declined relative to Q1 –potentially related to the increased Entertainment expenditure in the quarter. Expenditure via eCommerce platforms recorded QoQ growth (+2.1%) in the quarter, as consumer spending growth remained split between online and bricks-and-mortar retail outlets. This represented an acceleration compared to Q1, and was the strongest rate of expansion since Q1 2022.
for inflation. MasterCard SpendingPulse™ does not represent MasterCard financial performance. SpendingPulse™ is provided by MasterCard Advisors, the professional services arm of MasterCard International Incorporated. See www.dublineconomy.ie for more info on methodology.
95 100 105 110 115 120 125 130 135 140 145 150 155 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 6 //
METHODOLOGY
Ireland Dublin +8.2% YoY Necessities eCommerce Household Goods Entertainment Discretionary +5.9% YoY +4.0% YoY +20.7% YoY +6.4% YoY RETAIL 150 +4.7% YoY 144 +4.7% YoY *ALL VALUES ARE SEASONALLY ADJUSTED BY GRANT THORNTON,
BEEN RE-ADJUSTES SINCE THE LAST ISSUE. THE DATA IN THIS ISSUE IS HENCE NOT DIRECTLY COMPARABLE TO PREVIOUS ISSUES.
A macro-economic indicator, SpendingPulse™ reports on national and Dublin retail sales and is based on aggregate sales activity in the MasterCard payments network, coupled with estimates for all other payment forms, including cash and cheque. This information has been grossed up to present an estimate of the total retail sales of retail businesses in Ireland and Dublin to both residents and tourists. Data is seasonally adjusted but is not adjusted
Dublin Retail Sales Value Index (SA) Q2 2023
AND HAVE
Mixed results for dublin tourist spending in second quarter
The Dublin tourism market produced some mixed retail spending results in Q2 which may be of concern for the Capital’s ongoing competitiveness and attractiveness. Overall spending grew by 3.1% QoQ in the spring and early summer periods. This was primarily influenced by the US market. An expansion of 7.6% QoQ amongst visitors from this crucial market was encouraging and bodes well ahead of the busy summer/Q3 season.
The UK and German markets were concerning though. Spending by visitors from our nearest neighbour contracted by almost 16% QoQ which suggests that the market for short-stay visits to Dublin is suffering. This may be an indication that the current woes in the UK economy are having implications for Dublin tourism,
especially when affordability and the availability of accommodation is an issue in the Capital.
A similar outcome was recorded for the German market where a contraction in retail spending of 4.2% QoQ is cause for further concern, and will need to be closely tracked over the summer period.
Despite such developments, respective expansions in spending of 0.7% QoQ and 35.4% QoQ from the French and Chinese markets are positive and will have contributed to overall spending growth in Dublin in Q2.
At the national level, tourist retail spending also recorded modest QoQ growth in the quarter (+4.1%) but warning signs were evident. A contraction in spending of 18.1% amongst US visitors is particularly concerning, though the key European markets of the UK (-0.2%), Germany (+5.2%) and France (+7.1%) remained stable or in expansion territory.
Inflation Continues to Fall
The Irish inflation rate, which has been central to rising retail spending levels since early 2022, continued on a downward trajectory into the summer period. As shown in the chart, the overall inflation rate fell to 5.8% in July as rising interest rates and a modest settling of global uncertainty took effect. Energy prices, which have been a core driver of inflation since the onset of war in Ukraine, began to fall YoY in June and into July. This will have been welcomed by Dublin consumers who have been faced with rising prices across the economy and rapid increases in interest rates over recent quarters.
// 7
Irish
Consumer Price Index
SOURCE: CSO RETAIL
-18.1% QoQ CHANGE IN SPENDING IN IRELAND +7.6% QoQ CHANGE IN SPENDING IN DUBLIN QoQ CHANGE IN SPENDING IN IRELAND +7.1% +0.7% QoQ CHANGE IN SPENDING IN DUBLIN QoQ CHANGE IN SPENDING IN IRELAND +5.2% -4.2% QoQ CHANGE IN SPENDING IN DUBLIN QoQ CHANGE IN SPENDING IN IRELAND -4.2% +35.4% QoQ CHANGE IN SPENDING IN DUBLIN QoQ CHANGE IN SPENDING IN DUBLIN -0.2% -15.9% QoQ CHANGE IN SPENDING IN IRELAND QoQ OVERALL CHANGE IN TOURSIM SPEND IN DUBLIN +4.1% +3.1% QoQ OVERALL CHANGE IN TOURSIM SPEND IN IRELAND Overall Dublin Ireland SOURCE: MASTERCARD SPENDINGPULSE 0% 2% 3% 5% 7% 8% Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23
Dublin and Ireland Tourist Spend by Origin - Q2 2023 (SA)
Hotel occupancy remains at low ebb
Dublin Hotel Supply & Occupancy Rates (SA)
Occupancy levels at Dublin hotels remained at a relatively low ebb in July 2023. The Capital's occupancy rate stood at 75.9% (SA) in the month. This was down by 2.7 percentage points YoY and is somewhat concerning for the sector given July is typically a peak month for tourism. Average Daily Rates for hotel rooms fell to a 12-month low in July and may be a reflection of hoteliers reducing prices to stimulate demand. The average rate for a room was €168 (SA), down by 4.5% MoM and by 14.3% from the peak of September 2022 (€196, SA). The supply of hotel rooms, which increased by more than 7% YoY in July, may also be affecting prices.
Hospitality sector buoyant through summer 2023
Seated Diners at Dublin Restaurants (% Change Relative to 2019)
The Dublin hospitality sector remained buoyant through the summer period, in spite of ongoing cost of living challenges for consumers. The volume of seated diners at restaurants in the Capital was 61.4% above the 2019 baseline in mid-August 2023. This followed a peak on the final weekend of July, which may be partially explained by the All Ireland Football Final. Across the country as a whole, the sector continued to perform strongly in August with seated diners up by more than 117% versus 2019. The increase of the hospitality and tourism VAT rate from 9% to 13.5% at the end of August will present a further challenge for the sector over the remainder of the year.
-100% -75% -50% -25% 0% 25% 50% 75% 100% 125% 150% Aug 20 Sep 20 Nov 20 Dec 20 Feb 21 Apr 21 May 21 Jul 21 Aug 21 Oct 21 Dec 21 Jan 22 Mar 22 Apr 22 Jun 22 Aug 22 Sep 22 Nov 22 Dec 22 Mar 23 May 23 Jun 23 Aug 23 0 20 40 60 80 100 120 140 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jul 21 Sep 21 Nov 21 Jan 22 Mar 22 May 22 Jul 22 Sep 22 Nov 22 Jan 23 Mar 23 May 23 Jul 23 8 //
JUL '23 HOTEL OCCUPANCY RATE (SA) 75.9% YEAR ON YEAR CHANGE % POINTS -2.7 INDEX OF HOTEL ROOM SUPPLY (SA, JULY 2013=100) 129.0 YEAR ON YEAR % CHANGE +7.2 SOURCE: STR GLOBAL. SEASONALLY ADJUSTED BY GRANT THORNTON. NOTE: DATA RE-ADJUSTED SINCE THE LAST ISSUE. SOURCE: OPENTABLE. NOTES: DATA ONLY INCLUDES SATURDAY DINERS. SINCE MARCH 2023, THE SOURCE DATA IS PRESENTED RELATIVE TO ONE YEAR BEFORE. GRANT THORNTON HAVE ADJUSTED THIS DATA TO MAINTAIN THE 2019 BASELINE. AUG '23 PERCENTAGE CHANGE IN SEATED DINERS VERSUS 2019 BASELINE - DUBLIN +61.4 PERCENTAGE CHANGE IN SEATED DINERS VERSUS 2019 BASELINE - IRELAND +117.2 Index of Supply Occupancy (%)
HOSPITALITY 120.4% Max National Lockdown/Level 5 Restrictions 83.9% Max
Dublin as a Hub in the Transatlantic Economy
Dan O’Brien Chief Economist, Institute of International and European Affairs
The Transatlantic economy stretches from Silicon Valley on America’s Pacific coast to the manufacturing belt of Germany and the EU countries bordering Russia. Its two-continent components - Europe and the US - are more economically integrated than any other regions of the planet, as measured by flows of goods, services, capital, people and data in both directions across the Atlantic. There are few countries in the rest of the world that do as much cross-border business with even their immediate geographic neighbours as Europe and the US do together.
A Location of Choice for Businesses
Dublin has long been one of the most important hubs in this giant Transatlantic economy. Relative to its size, it is arguably the most important single hub.
Despite tectonic shifts in world affairs in recent years, Ireland and its capital should be well placed to remain a location of choice for businesses selling goods and services into the Transatlantic economy and beyond. Indeed, fracturing relationships and geopolitical tensions stand to make Ireland relatively more attractive as a business location - Jason Furman, chief economic advisor to President Obama, noted recently at the Institute of International and European Affairs that western companies seeking to reduce supply chain risks, in Asia in particular, could view Ireland as an increasingly secure location in which to do business.
Relative and Absolute Security
It is, however, important to distinguish between relative and absolute security. While Ireland has become relatively more secure (thanks largely to its geography), a worsening security environment in Europe and
tectonic shifts in world affairs in recent years, Ireland and its capital should be well placed to remain a location of choice for businesses selling goods and services into the Transatlantic economy and beyond.
globally has made most countries less secure in absolute terms. Cyberattacks on industries of global importance clustered in Ireland and threats to vital undersea cables and pipelines are now just two non-negligible risk factors.
If a single high-profile global company operating in Ireland were to suffer extended disruption to its business operations owing even to the perception that security threats had not been mitigated by the State, the reputation of Dublin and Ireland as a place to do business could suffer quickly and catastrophically. In the highly competitive world of luring foreign direct investment, competitor countries would be quick to play up any security failings, real or perceived.
Energy security and cybersecurity, along with more traditional forms of military security, have long been given a lower priority by successive Irish governments than in our other north Atlantic neighbours, every single one of which is a member of Nato.
Becoming an international business hub has made Dublin prosperous. It has also made the capital a target. In a world that could well fragment into regional blocs in the years and decades ahead, a greater focus on minimising security threats must now become a national imperative.
// 9
SPECIAL REPORT
Despite
Dublin unemployment stable in Q2
Dublin's unemployment rate remained stable at 5% (SA) in the second quarter of 2023. This was broadly in line with Q1 2023 but up marginally on the same quarter in 2022 (4.6%). Fewer than 42,000 Dublin residents were unemployed in Q2. This was less than half the 2010 peak (87,600) but somewhat higher than the low which was recorded in pre-pandemic 2019 (32,200). The Capital's labour market remains remarkably resilient in the postpandemic era, especially as the unemployment rate has not shifted dramatically despite increased inward migration.
Dublin employment hits new heights
Employment levels in Dublin reached new heights in Q2 2023. Close to 795,000 residents of the Capital (SA) were in employment in the quarter as 13,500 jobs were created QoQ (+1.7%). Almost 25,000 more residents were in jobs when compared to Q2 2022, representing an expansion of 3.1%. The public sector was the main driver of this growth with 16,900 more residents (+8.7%) engaged in the sector YoY. This was followed by the private services sector where employment rose by 8,000 or 1.7%. Construction employment was steady YoY but industry recorded a reduction in employment of 1,400 or 2.4%. This may be a partial reflection of the Dublin Purchasing Managers' Index on page 5 of this issue which shows that the manufacturing sector is in contraction.
0% 2% 5% 7% 9% 11% 14% 16% Q2 13 Q4 13 Q2 14 Q4 14 Q2 15 Q4 15 Q2 16 Q4 16 Q2 17 Q4 17 Q2 18 Q4 18 Q2 19 Q4 19 Q2 20 Q4 20 Q2 21 Q4 21 Q2 22 Q4 22 Q2 23 10 //
DUBLIN & NATIONAL UNEMPLOYMENT RATE % (SA)
Q2 '23 DUBLIN UNEMPLOYMENT RATE (SA) 5.0% YEAR ON YEAR CHANGE % POINTS +0.4 DUBLIN EMPLOYMENT '000S (SA) 798.2 YEAR ON YEAR CHANGE '000S (SA) +24.1
LABOUR MARKET 14.2% Max 12.4% Max SOURCE: CSO. DUBLIN SEASONALLY ADJUSTED BY GRANT THORNTON NOTE: DATA RE-ADJUSTED SINCE LAST ISSUE National Dublin 0 200 400 600 800 Q2 13 Q2 14 Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Employment by Broad Sector '000s (SA) SOURCE: CSO. SEASONALLY ADJUSTED BY GRANT THORNTON. INDIVIDUAL SECTOR VALUES MAY NOT SUM TO TOTAL DUE TO ROUNDING.
Q2 '23 SERVICES EMPLOYMENT '000S (SA) 695.6 YEAR ON YEAR CHANGE '000S (SA) +24.9 INDUSTRY & CONSTR. EMPLOYMENT '000S (SA) 99.3 YEAR ON YEAR CHANGE '000S (SA) -1.1 Private Services Public Sector Industry Construction 794,900 Max
Dublin job postings recede in summer 2023
Job Postings on Indeed (Feb 2020 = 100)
Dublin job postings on the Indeed website receded in August 2023. The job postings index for the Capital fell 3.4 percentage points (pp) below the 2020 baseline in the month. While many jobs are still available, the reduction over the past 12 months is likely a reflection of companies successfully filling positions - hence contributing to rising employment in the Capital. Softness in certain sectors, such as manufacturing, may also be a factor. The situation across the rest of Ireland remained radically different, with the job posting index remaining 66.8pp above the 2020 baseline in August.
Dublin FDI increases but down significantly YoY
Foreign Direct Investment (FDI) into the Dublin economy reached over $544 million (SA) in Q2 2023, representing an expansion of 4% QoQ but a decline of over 55% YoY. While 1,916 new jobs (SA) were created, this was down by more than 1,600 jobs YoY (-46.4%). The number of FDI projects also receded by 25% YoY to 33 projects (SA) in the quarter. Dublin (+13 projects) and Lisbon (+1 project) were the only two cities analysed in which the number of new FDI projects increased QoQ, with slowing global growth, rising interest rates and a challenged technology sector likely contributory factors. Despite this, FDI investment per capita in Dublin ($474, SA) compared favourably to other European cities in Q2.
// 11 LABOUR MARKET
40 60 80 100 120 140 160 180 200 220 Aug 21 Oct 21 Dec 21 Feb 22 Apr 22 Jun 22 Aug 22 Oct 22 Dec 22 Feb 23 Apr 23 Jun 23 Aug 23
NOTE: 7 DAY MOVING AVERAGE, INDEXED TO 01/02/2020. SERIES RESTATED BY INDEED SINCE THE LAST ISSUE
AUG '23 PERCENTAGE POINT CHANGE VERSUS FEB 2020DUBLIN -3.4 PERCENTAGE POINT CHANGE VERSUS FEB 2020 - REST OF IRELAND +66.8 Dublin Rest of Ireland 110.0 Min FDI Capital
Q2 '23 NO. OF PROJECTS (SA) AVG. PROJECT VALUE (MILLION, SA) LISBON 15 27.5 LONDON 61 19.4 DUBLIN 33 16.5 PARIS 26 12.4 MADRID 20 9.3 AMSTERDAM 22 7.2 0 500 1000 1500 2000 2500 3000 $0 $100 $200 $300 $400 $500 Dublin Lisbon London Madrid Paris Amsterdam Jobs Created (right axis) Capital Investment per Capita (left axis) SOURCE: FDI MARKETS. SEASONALLY ADJUSTED BY GRANT THORNTON.
Investment per Capita & Jobs Created (SA), Q2 2023
University Rankings Provide Boost for Dublin Economy
Internationally published benchmarks are a useful means of measuring a city’s performance relative to its peers, and recent indicators for Dublin confirm the city’s strong showing across a range of dimensions (see table opposite).
Improved University Rankings
The international standings of Dublin’s four universities each improved over the past year, according to the 2024 QS World University Rankings. Trinity College Dublin ranked 81st globally, up 17 places from 2023 on the back of its ‘strong reputation’ among international academics and ‘excellent career prospects’ for its graduates. UCD moved up 10 places to 171st, with DCU rising from 471st to 436th between the 2023 and 2024 rankings. TU Dublin, which was formed in 2019, also moved up to within the 851-900 category. Irish universities were noted for their highly-employable graduates and excellent sustained performance by QS, but could further improve in terms of collaborations with international universities and companies, and the impact of their research projects and courses.
Expat Cost of Living
Dublin dropped out of the top 50 most expensive cities in the world for expatriates in 2023, according to a Mercer Cost of Living report. The Capital dropped two places from 49th in 2022 as it was said to “remain an attractive location for expatriates when they elect to go on assignment”. The weakness of the Euro against the Dollar was influential in the modest change in ranking, while strong demand in the private rental market and high utility costs were highlighted as Dublin-specific challenges for employers of international assignees.
Hong Kong remained atop the list in 2023, followed by Singapore and Zurich.
A separate ranking from ECA International placed Dublin in 9th position in Europe and 38th globally for expatriate costs. The ranking, which compares a basket of like-for-like consumer goods and services commonly purchased in over 500 locations worldwide, placed Dublin behind the likes of Geneva (1st) and London (3rd) but ahead of Amsterdam (10th) and Paris (13th) in Europe. The Capital’s European ranking had increased by four places from 2022, largely due to high inflation according to ECA International.
Mobility & Sustainable Transport Issues
Dublin has been ranked 41st out of 42 cities in Europe in terms of the availability of zero-emissions and shared transport. The Capital rated particularly poorly for zeroemission busses where the Clean Cities Campaign noted that the city did not have a single zero-emission bus in its fleet. Poor availability of shared electric cars was another point of weakness. Dublin’s overall score of 9% was only ahead of Greater Manchester (8%) and considerably short of the 87% recorded by the top ranked city, Copenhagen.
Top Tourist Attraction
Dublin’s Kilmainham Gaol Museum has been ranked as the 13th best tourist attraction in the world. The Museum was described as a ‘must see’, ‘moving’ and ‘insightful’ experience by TripAdvisor. Dublin was strongly represented in the rankings which placed The Little Museum, 14 Henrietta Street, and The Irish Rock n Roll Experience in 2nd, 3rd and 4th places in Ireland respectively.
12 //
DUBLIN'S INTERNATIONAL RANKINGS
// 13 ‡ CHANGE ON PREVIOUS PUBLICATION OF THE RELEVANT BENCHMARK. AN UPWARD-POINTING ARROW DENOTES AN IMPROVEMENT. †TCD ENGLISH & LITERATURE DEPARTMENT. *TCD.
Source Benchmarking Criteria Year Ranking QS World University Rankings University quality. 2024 81* ▲ Mercer Cost of Living City Rankings Cost of consumer goods and services. 2023 51 ▲ ECA International Cost of Living report Multiple criteria including food, household goods, clothing, electrical goods, motoring, meals out, alcohol, utilities and public transport. 2023 38 ▼ Clean Cities Campaign City Rankings 2023 Availability of shared bikes or scooters & EV charging points; the use of zero-emissions busses; shared electric vehicle schemes. 2023 41InterNations Expat City Ranking Quality of Life, ease of settling in, working abroad, personal finance, and expat essentials. 2022 37 ▲ Resonance World's Best Cities 24 criteria across six categories of Place, Product, Programming, People, Prosperity, Promotion 2023 19 ▲ Eden Strategy Institute Top 50 Smart City Governments 10 key factors covering governance, resourcing, smart programmes, policies and ecosystem 2021 26 ▲ EU European Capital of Innovation Awards Inter-disciplinary ecosystems, and promotion of innovative initiatives to improve wellbeing of citizens 2021 2 ▲ fDi x TNW European Tech Cities of the Future FDI performance, connectivity, cost effectiveness, economic potential, innovation & attractiveness 2021 3fDi Small Regions of the Future Economic potential, human capital and lifestyle, cost effectiveness, connectivity and business friendliness 2022 1 ▲ fDi Global Cities of the Future FDI performance, connectivity, cost effectiveness, economic potential, innovation & attractiveness 2021 5 ▼ EY Financial Services Brexit Tracker Movement of services and staff at financial services firms in the UK since the Brexit referendum in 2016 2022 1INSEAD Global Talent Competitiveness Index Regulatory, market and business/labour landscape, external and international openness, education and access to growth opportunities and sustainability and lifestyle 2022 10 ▼ Mercer Quality of Living City Rankings Environmental/ socio-economic 2019 33 ▲ PwC-ULI Emerging Trends in Real Estate Europe Outlook for investment and development, and the scale/liquidity of the city's market 2021 13 ▼ Startup Genome Global Startup Ecosystem Report Performance, funding, market reach, connectedness, talent, experience 2021 36ECA International Most Liveable Locations for European Expatriates Quality of expatriate living conditions, including climate, health services, housing and utilities, social networks, infrastructure, personal safety, political tensions and air quality. 2022 10 ▲ IMD World Competitiveness Ranking 332 criteria related to competitiveness, digital competitiveness and talent 2020 12 ▼
DUBLIN'S LATEST INTERNATIONAL RANKINGS
DUBLIN'S INTERNATIONAL RANKINGS
Housing market activity fluctuates Across
H1
Dublin Residential Property Transactions (SA)
Transactions in Dublin's residential property market fluctuated across H1 2023, but stood close to long term averages in June. Total transactions in the month reached 1,857 (SA), representing MoM and YoY reductions of 10% and 6.9% respectively. Of these transactions, 338 (SA) involved newbuild properties. This was up MoM (+12.4%) but down by more than a third YoY (-33.9%). National level data mirrored the fluctuations in the Dublin market over the first half of 2023, with a new peak in transactions in May (6,525, SA) followed by a marginally weaker month in June (6,275 transactions, -3.8% MoM).
Dublin residential prices rise for the first time in 2023
Residential property prices in Dublin rose MoM in June 2023, the first such increase this year. Prices increased by 0.3% MoM but remained down by 0.9% YoY. This unexpected MoM increase is in spite of rising interest rates and comes after reductions in each of the eight preceding months. Across the rest of Ireland, prices rose by 0.7% MoM in June. While this was the strongest rate in almost a year, it contributed to a 4.5% YoY increase which is significantly lower than the equivalent rate in June 2022 (+16%) and underlines a broad cooling of price inflation outside Dublin.
40 80 120 160 200 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 Jun 21 Jun 22 Jun 23 0 500 1,000 1,500 2,000 2,500 3,000 Jun 18 Nov 18 Apr 19 Sep 19 Feb 20 Jul 20 Dec 20 May 21 Oct 21 Mar 22 Aug 22 Jan 23 Jun 23 14 // Residential Property Price Index (2015 = 100)
SOURCE: CSO. NOTE: 2015 = 100. JUN '23 PROPERTY PRICE INDEX DUBLIN 145.3 YEAR ON YEAR % CHANGE -0.9 PROPERTY PRICE INDEX NATIONAL EXCL. DUBLIN 189.7 YEAR ON YEAR % CHANGE +4.5
Dublin National excl. Dublin HOUSING
JUN '23 DUBLIN RESIDENTIAL PROPERTY TRANSACTIONS (SA) 1,857 YEAR ON YEAR % CHANGE -6.9 IRELAND RESIDENTIAL PROPERTY TRANSACTIONS (SA) 6,275 YEAR ON YEAR % CHANGE +1.3 SOURCE: CSO. SEASONALLY ADJUSTED BY GRANT THORNTON. NOTE: DATA RE-ADJUSTED SINCE LAST ISSUE. 2,431 Max 150.9 Max
Average dublin rents exceed €1,900 per month
Residential rents in Dublin rose for a fourth consecutive quarter in Q4 2022 (latest data available), reaching a new peak of over €1,900 per month. While the final quarters of 2020 and 2021 each saw declines in average rents, this was reversed in Q4 2022 with QoQ and YoY growth rates of 1.1% and 5.7% respectively. Broadly similar expansions of 1.7% QoQ and 4% YoY were recorded in the Greater Dublin Area (GDA) in the quarter. Outside the GDA, rents rose at their fastest rate in over three years (+5.1% QoQ) as a new peak of €970 per month was reached. Landlords selling properties and exiting the market remains an issue nationally, with 5,735 notices of termination issued to tenants nationally in Q2 2023 alone.
Housing commencements tick upwards in Q2
Construction of new residential properties in Dublin increased in Q2 2023. Over 3,500 units (non-SA) were commenced in the quarter, reflecting growth of more than 30% both QoQ and YoY. The volume of new units under construction was the strongest in almost two years, and will feed through to greater supply for residents of the Capital in the coming quarters. Completions of units were weaker in Q2 as 2,716 units (SA) entered the housing stock. While this represented a modest QoQ increase (+2.9%), it was down YoY (-3.2%).
€400 €600 €800 €1,000 €1,200 €1,400 €1,600 €1,800 €2,000 Q4 12 Q2 13 Q4 13 Q2 14 Q4 14 Q2 15 Q4 15 Q2 16 Q4 16 Q2 17 Q4 17 Q2 18 Q4 18 Q2 19 Q4 19 Q2 20 Q4 20 Q2 21 Q4 21 Q2 22 Q4 22 0 1000 2000 3000 4000 5000 6000 Q2 17 Q4 17 Q2 18 Q4 18 Q2 19 Q4 19 Q2 20 Q4 20 Q2 21 Q4 21 Q2 22 Q4 22 Q2 23 // 15 Dublin House Commencements & Completions
Completions (SA) Commencements
Q2 '23 TOTAL HOUSE COMMENCEMENTS 3,577 YEAR ON YEAR CHANGE +873 TOTAL HOUSE COMPLETIONS (SA) 2,716 YEAR ON YEAR CHANGE -88 SOURCE: CSO, DHLGH NOTE: COMPLETIONS DATA RE-ADJUSTED SINCE LAST ISSUE. HOUSING Residential rents € per month SOURCE: RTB NOTE: Q4 2022 IS LATEST DATA AVAILABLE
Q4 '22 DUBLIN AVG RESIDENTIAL RENT € PER MONTH 1,908 YEAR ON YEAR € CHANGE +103 5,013 Max 2,895 Max Outside GDA Greater Dublin Area Dublin €1,908 Max
Public transport journeys surge in Q2
Public Transport Million Trips
(SA)
Passenger journeys on Dublin's public transport network surged to a new peak in Q2 2023. Over 64 million journeys (SA) were undertaken in the quarter. This was the highest quarterly total since the series began in 2010, and reflected QoQ and YoY expansions of 7.6% and 31.3% respectively. Growth was recorded across all four modes of public transport in the Capital. Dublin Bus had an exceptionally strong quarter, with an additional 3 million passengers using the service (+7.7%) compared to Q1. This was the highest volume on record. Irish Rail also recorded a strong QoQ expansion of 856,000 journeys (+11.3%) in the quarter. Growing employment, staff returning to physical workplaces, and the summer tourist season are likely contributors across the board.
Dublin road traffic volumes fall through summer 2023
Dublin
Traffic volumes on eight key roads in the Dublin region fell MoM but increased YoY in August 2023. Average daily traffic counts on the roads stood at 583,229 (SA) in the third week of August. While this was down from peak levels of in excess of 700,000 in Q2, it had increased by 11.7% YoY. The YoY growth rate was mainly driven by an 18.2% increase in afternoon volumes, though morning traffic levels also increased considerably (+15.7% YoY). Travel by car has become more expensive in recent months in Dublin and across Ireland with high fuel prices compounded by toll increases of up to 30 cent per journey on certain roads, including the M50.
100 200 300 400 500 600 700 800 900 Aug 18 Dec 18 May 19 Sep 19 Feb 20 Jul 20 Nov 20 Apr 21 Aug 21 Jan 22 Jun 22 Oct 22 Mar 23 Jul 23 16 //
Average Daily Traffic Count '000s (SA)
Q2 '23 PUBLIC TRANSPORT MILLION TRIPS (SA) 64.1 YEAR ON YEAR % CHANGE +31.3 SOURCE: TII. SEASONALLY ADJUSTED BY GRANT THORNTON. DATA IS WEEKLY.
SOURCE: NTA. SEASONALLY ADJUSTED BY GRANT THORNTON. NOTE: PROVISIONAL DATA VERIFIED BY ALL OPERATORS. DATA RE-ADJUSTED SINCE LAST ISSUE AUG '23 AVERAGE DAILY TRAFFIC COUNT (SA) 583,229 YEAR ON YEAR % CHANGE +11.7 PEAK VOLUME COUNT (AM)(SA) 45,045 YEAR ON YEAR % CHANGE +15.7 PEAK VOLUME COUNT (PM)(SA) 49,333 YEAR ON YEAR % CHANGE +18.2 Dublin City Bus Bus Éireann Irish Rail Luas TRANSPORT & TRAVEL 201,469 Min 0 10 20 30 40 50 60 70 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23
Airport passenger numbers exceed pre-pandemic levels
Dublin Airport Passengers '000s (SA)
Port activity stable in Q2
Dublin Port Tonnage Million Tonnes (SA)
Quarterly Dublin Airport passenger numbers exceeded pre-pandemic levels for the first time in Q2 2023. Over 8.3 million passengers (SA) passed through the airport in the quarter, reflecting growth of 3.3% QoQ and 18.4% YoY. Passenger numbers hence surpassed the previous Q3 2019 peak by 109,000 passengers (+1.3%) as air travel more than fully recovered in the early summer period. New routes to both European and North American destinations will have contributed to this recovery, supported by the largest operators in Ryanair, Aer Lingus (both operating ~2,050 weekly flights), British Airways (~1,200) and American Airlines (~800) which account for a combined 66% of the airport's weekly departures and arrivals.
Activity levels at Dublin Port were stable in the second quarter of 2023. A total of 9 million tonnes (SA) of throughput was handled at the Port in the quarter. This was down by 4.1% YoY (-380,000 tonnes) but was broadly steady QoQ (-0.4%). Import levels remained constant QoQ (-0.1%) but exports contracted by 1.1%. Imports of new trade vehicles and bulk liquid petroleum products were noted as recording especially strong growth rates, hence contributing to stable imports in the quarter. Dublin Port expects modest overall growth in 2023, and says that it now accommodates 80% of Ireland's containerised trade, 91% of UK trade and 68% of trade with Mainland Europe.
0 1 2 3 4 5 6 7 8 9 10 11 Q4 14 Q2 15 Q4 15 Q2 16 Q4 16 Q2 17 Q4 17 Q2 18 Q4 18 Q2 19 Q4 19 Q2 20 Q4 20 Q2 21 Q4 21 Q2 22 Q4 22 Q2 23 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q2 15 Q4 15 Q2 16 Q4 16 Q2 17 Q4 17 Q2 18 Q4 18 Q2 19 Q4 19 Q2 20 Q4 20 Q2 21 Q4 21 Q2 22 Q4 22 Q2 23 // 17
SOURCE: CSO & DUBLIN AIRPORT. SEASONALLY ADJUSTED BY GRANT THORNTON. NOTE: DATA RE-ADJUSTED SINCE LAST ISSUE.
Q2 '23 TOTAL PASSENGERS '000s (SA) 8,304 YEAR ON YEAR CHANGE '000s TRIPS (SA) +1,292
Q2 '23 DUBLIN PORT EXPORTS MILLION TONNES (SA) 3.52 YOY CHANGE MILLION TONNES (SA) -0.16 DUBLIN PORT IMPORTS MILLION TONNES (SA) 5.45 YOY CHANGE MILLION TONNES (SA) -0.22 SOURCE: DUBLIN PORT. SEASONALLY ADJUSTED BY GRANT THORNTON. NOTE: DATA RE-ADJUSTED SINCE LAST ISSUE. Imports Exports Total Tonnage TRANSPORT & TRAVEL 10.1 Max 8.3m Max Min
How has the EU helped Dublin’s economy?
Noelle O Connell CEO, European Movement
Ireland
Noelle O Connell is the CEO of European Movement Ireland (EM Ireland). Since 1954 EM Ireland’s mission has been to develop the connection between Ireland and Europe, and to achieve greater public understanding and engagement with the EU.
As Ireland marks fifty years of our EU membership this year, we at European Movement Ireland have been reflecting on the benefits the EU has brought for Ireland.
The benefits to Ireland of our EU membership are wide ranging. From access to the EU’s Single Market of some 450 million people, to utilising the advantages of trade agreements the EU has struck with countries, such as Japan. Meanwhile, EU standards are far reaching, from helping keep our food safe, to looking at methods to combat climate change.
As the centre of trade and investment in Ireland, and as we mark 50 years of being in the EU, it is timely to highlight some of the direct and indirect benefits Dublin has gained as a result of Ireland’s EU membership.
A European Tech Hub
Since the start of this century, Dublin has consolidated itself as a European tech hub. Global tech companies have set up their European and international operational offices in what is sometimes referred to as the ‘Silicon Valley of Europe’.
The current iteration of tech companies to set up in Dublin began in 2003 with eBay, Google and PayPal. Many more household names have followed, such as Meta in 2008 and TikTok in 2018. More recently, Mastercard opened its European Tech Hub in Dublin in April 2022.
A key factor behind such tech companies opening operations in Ireland is due to our membership of the EU. A 2022 report from Economist Intelligence Unit found that 46% of respondents ranked ‘access to EU markets’ as the top competitive advantages that Ireland has to offer.
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SPECIAL REPORT
Access to Labour
The report also ranked ‘access to EU skills’ (23%) as the 6th highest competitive advantage of Ireland. Due to the freedom of movement principle for EU citizens in the EU’s Single Market, EU citizens can move here to live, work and study without visas or work sponsorships, as found in countries such as Australia or Canada.
This gives tech companies, or indeed other companies, firms, educational institutions, etc., that are based in Dublin, the ability to easily hire skilled and talented people from across the EU. On this, data backs up that Dublin is attracting far more EU citizens to live and work there than anywhere else in Ireland.
The Department of Social Protection publishes amalgamated data on new PPS numbers that are issued annually. When looking at PPS numbers that were issued to EU citizens across Ireland in 2022, for those aged 25 – 64, Dublin saw the lion’s share with 46% (16,057). This is followed by Mid-East at 14% (4,943) and South-West at 13% (4,725).
These positive aspects of Ireland’s membership of the EU, resulted in Dublin becoming a top beneficiary of the UK’s departure from the EU, in particular for financial services. Between mid-2016 and early 2021, New Financial reported that some 135 firms had either relocated part of their business or had increased their presence in Dublin. This accounted for 25% of all Brexit-related moves.
Educational Benefits
The attractiveness of Dublin, as a result of our EU membership, can also be observed where participants under the Erasmus+ programme attend educational institutes in Ireland. It was first proposed by Dubliner Peter Sutherland (1946 – 2018) in 1985 when he was European Commissioner for Competition and Education.
It allows participants to attend colleges, universities, and other educational institutions to take part in research and development, courses, traineeships, and apprenticeships right across the EU and participating European countries.
This is in keeping with the core principle of the EU’s Single Market, that of the free movement of EU citizens. Since Erasmus+ began in 1987, over 100,000 people have visited Ireland and Dublin is always the top destination for thousands of Erasmus+ participants. According to a 2016 survey from the Higher Education Authority (HEA), 36% of Erasmus+ students in Ireland were based in Dublin third level institutions.
A young Irish State transitioned from relative economic stagnation and insularity to embrace economic openness, a place at the heart of the Single Market, a competitive and attractive location for global investment
- Tánaiste Micheál Martin on Ireland joining the EU, January 2022
Supports for Public Transport Development
The EU has helped and is currently helping Dublin and its economy in more indirect ways, such as its public transport system, which helps so many people get about to their place of work and elsewhere. In 2014, the European Investment Bank provided a loan of €150m for the Luas interconnecting lines, accounting for 41% of the final cost of €368m.
Meanwhile, in June this year, it was announced that Iarnród Éireann will receive €1.3m from the EU for studies that will examine the doubling of track capacity between the Connolly and Malahide train stations. Currently, DART and intercity traffic share the same tracks.
To conclude, the story of Dublin over the last fifty years has been transformative, reflecting how Ireland’s society and the economy has transformed too in no short amount due to our EU membership. Dublin’s economy has benefited hugely from Ireland’s EU membership over the last 50 years and will continue to do so for the next 50 and beyond.
// 19 SPECIAL REPORT
SOURCES: CSO, PMI S&P GLOBAL; SEAPORT CARGO DUBLIN PORT; PUBLIC TRANSPORT NTA; RESIDENTIAL RENTS RTB; COMMERCIAL PROPERTY CBRE RESEARCH, HOTEL OCCUPANCY STR GLOBAL. NOTE: THESE "PETROL GAUGE" CHARTS PRESENT THE PERFORMANCE OF THE PARTICULAR INDICATOR RELATIVE TO A RANGE OF PERFORMANCES FROM MOST POSITIVE (GREEN) TO LEAST POSITIVE (RED). EACH GAUGE PRESENTS THE LATEST VALUE COMPARED TO THE PEAK VALUE AND THE TROUGH VALUE OVER THE LAST DECADE (EXCEPT FOR PUBLIC TRANSPORT TRIPS, MASTERCARD SPENDINGPULSE AND STR GLOBAL WHICH COVER THE PAST 5 YEARS, HOUSING COMPLETIONS WHICH COVER THE PAST 6 YEARS). THE COMMERCIAL PROPERTY GAUGES ARE RED AT THE HIGH AND LOW EXTREMES, IN RECOGNITION OF THE UNDESIRABILITY OF RENTS THAT ARE EITHER TOO HIGH OR TOO LOW AS WELL AS VACANCY RATES. Dublin Economic Scorecard ECONOMY S&P Global Business PMI Q2 2023 Unemployment Rate Q2 2023 SpendingPulse Sales Index Q2 2023 3 MONTH MOVING AVERAGE (SA) % (SA) INDEX (2014 = 100) (SA) 25 63 4 12 111 150 TRAVEL Hotel Occupancy Rate Jul 2023 Seaport Cargo Q2 2023 Public Transport Trips Q2 2023 % OF TOTAL ROOMS (SA) MILLION TONNES/QUARTER (SA) MILLION TRIPS/QUARTER (SA) 5 86 6.8 10.1 12.7 65 RESIDENTIAL PROPERTY Average Residential Rents Q4 2022 Residential Property Price Index Jun 2023 Housing Completions Q2 2023 €/QUARTER INDEX (2015 = 100) UNITS/QUARTER (SA) 1,051 1,908 65 151 882 2,910 COMMERCIAL PROPERTY Dublin City Centre Office Rent Q2 2023 Dublin 2/4 Office Vacancy Rate Q2 2023 Dublin Suburbs Office Vacancy Rate Q2 2023 INDEX (2006 = 100) % % 50 118 4 20 6 19 54.9 5.0 150 75.9 9.0 64.1 1,908 118 11.8 14.2 145.3 2,716