Ibec on tackling inflation
The group that represents Irish business has forecast economic growth of approximately 4.3% in the year ahead, a decrease from the 6.1% that was predicted for 2022 in Q4 2021.
Ibec’s latest Economic Outlook report comes with a revised forecasts – largely as a result of the economic impact from rising costs and supply chain challenges across the global economy, accelerated by the Russian invasion of Ukraine.
The key findings predict that the economic impact from the invasion of Ukraine will knock between one and two per cent off the rate of growth relative to the 6.1% expected for 2022 in Q4 2021 – but economic growth will still be positive at around 4.3% in the year ahead.
For households, Ibec’s expectation is that consumer price inflation this year will run at around 6.1% for the full year and increase from a 3.3% expectation in our Q4 2021 outlook.
Irish households come into this period with record savings. At its peak during the first half of 2021, household savings were rising by over 17% annually. And whilst the re-opening of the economy in the early part of 2022 has seen some slowdown in the rate of deposit growth (to 9% annually), we have yet to see significant drawdown on existing savings.