The Central Bank of Ireland has released a report indicating a slowdown in the country’s economic growth over the next three years. Previously optimistic predictions have been revised downward, with expectations now pointing towards moderate growth. Factors such as weakening global demand, domestic capacity constraints, and political tensions are cited as hindrances to economic expansion.
Modified Domestic Demand (MDD) growth is forecasted to decrease slightly this year, with marginal improvements expected in the following years. Similarly, GDP growth is projected to be modest, with a slight uptick in 2024 but slower growth thereafter.
On a positive note, inflation is anticipated to decrease, driven by lower energy prices and supply chain normalization. However, challenges persist in the labor market, with supply shortages expected in certain sectors while unemployment remains steady.
While the Finance Minister welcomed the report’s forecast of decreasing inflation, acknowledging potential benefits for families and businesses, the Central Bank emphasizes the need for continued vigilance to maintain financial stability amidst global and domestic changes.