An Update on the Irish Economy and Budget 2016

Embassy breakfast briefing on Irish economy and Budget 2016 for Irish-Polish Chamber of Commerce

Ambassador Keown updated members of the Irish-Polish business community and Polish officials on developments in the Irish economy and Budget 2016 in Ireland.

According to the IMF’s recent forecasts, Ireland will be the fastest-growing advanced economy in the world in 2015 and 2016. Ambassador Keown outlined the factors behind Ireland’s strong economic recovery, including record export levels and growing domestic demand. The solid economic growth, strong fiscal performance in 2015, and rising levels of employment give consumers, business and investors renewed confidence in Ireland’s economic future.

On Budget 2016, Ambassador Keown gave details on Ireland’s innovative new Knowledge Development Box (KDB). The KDB offers a further dimension to Ireland’s corporate tax offering by applying a tax rate of 6.25% to profits arising from Intellectual Property Assets which are the result of qualifying research and development activity carried out in Ireland. The KDB, which will take effect on 1 January 2016, will encourage innovative industries to carry out high-value research and development in Ireland. The KDB is the world’s first and only such knowledge box to meet the OECD’s ‘modified nexus’ standard.

The dynamic and growing trade relations between Ireland and Poland were also discussed at the briefing. Trade between the two countries was worth over €2.2 billion in 2014. In the first half of this year, Irish exports to Poland increased by 36% and Polish exports to Ireland were up 24%. Strong people-to-people ties and transport connectivity are playing an important role in this growth. With over 55 flights each week between the two countries, connectivity is excellent.

The Irish-Polish Chamber of Commerce fosters Irish-Polish business relations and organises regular business and networking events. To find out more about the Chamber, please visit: irishpolish.pl