The Dublin City Region plays a pivitol role in the economy of Ireland. The Dublin Economic Monitor tracks the capital’s performance quarterly to provide insightful data.
Retail sales in Dublin contracted by 4% in the first quarter of 2021 as sales activity decelerated across all sectors. Sectors, like discretionary and entertainment that had already been experiencing declines fell under more pressure in the quarter. Spending on necessities and household goods that had been increasing and helping to offset weakness elsewhere saw sales growth moderate. This adds up to a negative aggregate growth rate for Dublin for Q1 2021 as well as negative growth for Ireland overall.
The strict COVID-19 lockdown in Ireland at the start of 2021 meant further woe for companies in Dublin. Restrictions led to steep reductions in both output and new orders, albeit ones that were less marked than seen during the worst of the pandemic in the second quarter of last year. One positive from the latest set of results was a stabilisation of employment, with firms seemingly deciding to look through the restrictions in the hope of better days ahead as the planned easing of COVID-19 controls and the ongoing vaccination programme help the economy to reopen.