The Macroeconomic Imbalance Procedure (MIP) is an annual process which the European Commission undertakes, using a scoreboard of 14 headline indicators and 28 auxiliary indicators to screen for any macroeconomic imbalances that may occur in member states. Each of the 14 headline indicators has a threshold, set by the European Commission, beyond which economic imbalances are determined to have occurred.
All EU member states have obligations to ensure that their economies do not exceed the various thresholds on the headline indicators. This publication is designed to help users to verify the European Commission's data on Ireland and provides additional analysis of all headline indicators and many auxiliary indicators. The information shown in the MIP scoreboard is based on the data available for the Alert Mechanism Report (AMR) 2023, due to be published in late November 2022. The cut off for inclusion of data for each country in the AMR 2023 was 22nd October 2022.
Data shown in this publication was compiled throughout the month of October 2022. Some data may have been updated/revised since this date as part of the regular production cycle of each domain, meaning small differences may exist between this publication and the AMR.
|Table 1.1 Macroeconomic Imbalance Procedure Scoreboard for Ireland, 2017-20211|
|External Imbalances and Competitiveness|
|1||Current Account Balance as % of GDP (3 yr average)||-4%/6%||0.2||0.4||-4.8||-7.3||-4.2|
|2||Net International Investment Position as % of GDP||-35%||-166.9||-181.1||-173.7||-177.0||-145.5|
|3||Real Effective Exchange Rate (42 IC - HICP deflator) (3 yr % change)||±5%||-6.3||2.3||-1.4||-1.2||-2.6|
|4||Export Market Share (5 yr % change)||-6%||70.9||78.4||73.1||51.5||39.9|
|5||Nominal Unit Labour Cost (3 yr % change)||9%||-13.9||-1.3||-3.9||-6.3||-7.9|
|6||Deflated House Prices (1 yr % change)||6%||9.2||8.3||0.6||-0.5||4.3|
|7||Private Sector Credit Flow as % of GDP, consolidated||14%||0.3||-8.8||-9.6||-3.6||2.6|
|8||Private Sector Debt as % of GDP, consolidated||133%||249.1||230.7||209.3||187.3||168.1|
|9||General Government Sector Debt as % of GDP||60%||67.6||63.0||57.0||58.4||55.4|
|10||Unemployment Rate (3 yr average)||10%||8.4||7.0||5.8||5.5||5.7|
|11||Total Financial Sector Liabilities (1 yr % change)||16.5%||4.2||5.2||15.4||7.4||18.8|
|12||Activity Rate, % of total population aged 15-64 (3 yr change in p.p)||-0.2%||0.8||0.8||0.6||-1.8||1.8|
|13||Long-term Unemployment Rate, % of active population aged 15-74 (3 yr change in p.p)||0.5%||-3.5||-3.2||-2.6||-1.7||-0.3|
|14||Youth Unemployment Rate, % of active population aged 15-24 (3 yr change in p.p)||2.0%||-9.0||-6.4||-4.3||1.4||0.8|
|1Years where the threshold has been breached are highlighted in bold.|
Table 1.1 above provides the MIP Scoreboard for Ireland for the years 2017-2021. Where indicative thresholds are exceeded, cells in Table 1.1 are highlighted in blue.
In 2021, four out of the 14 MIP indicators for Ireland breached their thresholds. These indicators were:
- Current Account Balance
- Net International Investment Position
- Private Sector Debt
- Total Financial Sector Liabilities