The pace of NPE reduction is anticipated to accelerate based on the revised and more ambitious NPE targets submitted by banks and covering the period up to 2021. 2. The current state and the outlook of the economy have both improved Following the stagnation of 2015-2016, GDP growth turned positive in 2017 (1.5%) and accelerated to 2.2% (y-o-y) in the first half of 2018.
See “Financial stability considerations of being a small, highly globalised economy” FSR 2019 H1 23. https://centralbank.ie/docs/default-source/publications/research-technical-papers/09-rt-17-global-and-domestic-modelingof-macroeconomic-shocks.pdf?sfvrsn=9 For the Irish economy, while there is almost no contemporaneous effect on domestic output, the peak effect of 1.37% of output is the largest loss observed for the studied group of economies.