Ireland’s economic outlook appears promising as the Economic and Social Research Institute (ESRI) forecasts steady growth in the coming years. Modified Domestic Demand (MDD) is projected to increase by 2.3 percent this year and 2.5 percent in 2025, while Gross Domestic Product (GDP) is expected to grow by 2.5 percent in 2024 and 2.3 percent in 2025.
The nation’s trade and domestic sectors are poised to bolster economic expansion, despite recent challenges such as escalating living costs. However, there’s a positive shift with inflation anticipated to decrease from 6.3% in 2023 to 2.3% in 2024 and further to 2% in 2025, chiefly attributed to lower energy prices.
Moreover, the financial sector is on track for recovery following a slowdown in 2023. ESRI predicts a decline in unemployment, with rates forecasted to reach 4.3 percent in 2024 and 4.2 percent in 2025.
The report, compiled by Professor Kieran McQuinn of ESRI, suggests these developments will ultimately lead to increased disposable income for Irish citizens, signifying a brighter economic landscape ahead.