EY report states Irish economy remains resilient
Ireland’s economy remains resilient and faces into the second half of 2023 and beyond from a position of real strength, with continuing economic growth, further job gains and inflation beginning to subside, according to EY Ireland’s Economic Eye Summer 2023 Forecast.
After several years of outsized economic growth, EY is now forecasting more moderate growth for the Irish economy, with GDP expected to rise by 4.8% in 2023 and 4.3% in 2024, and Modified Domestic Demand to grow by 3.4% in 2023 and 3.0% in 2024.
While growth is moderating in Ireland, it will continue to outperform many economies around the world, exceeding forecasts for the Euro area (0.9% in 2023), the UK (0.4%) and overall global growth (2.7%). In Northern Ireland, EY is forecasting that the economy will expand by 0.3% in 2023, before accelerating to 0.8% in 2024 and 1.6% in 2025.
The forecast does, however, sound some notes of caution. European monetary policy decisions will impact the real economy with a delay, while a tight labour market and the threat of underlying inflation remaining ‘sticky’ pose potential risks for an economy where maintaining competitiveness will be key.