The Republic’s economy will expand 2.2% this year as employment continues to grow at a robust pace, and the North’s economy will grow by 0.7%, business advisory and accountancy firm EY has forecast.
Cooling price pressures and interest-rate cuts will also help buoy economic activity, according to the forecasts by chief economist Loretta O’Sullivan.
GDP growth in the Republic of Ireland is set to “outperform many economies around the world, exceeding forecasts for our neighbours”, with the euro-zone as a whole and the British economy both projected to grow by 0.9%”, the EY forecasts show.
Modified domestic demand, which can oftentimes provide a better reading of Ireland’s economy, will also grow 2.2% this year, it said.
Loretta O’Sullivan said: ‘Lower global energy prices and higher interest rates have helped curb inflation and we are projecting it will retreat further in 2024’. File picture
“Lower global energy prices and higher interest rates have helped curb inflation and we are projecting it will retreat further in 2024, easing pressure on hard-pressed households and businesses,” said Ms O’Sullivan in a commentary.
“We are also getting signals from the European Central Bank that interest rates cuts are on the agenda, although this may occur later in the year than many market watchers have speculated bringing more good news for businesses, households and investors,” she said.
In the North, stalling job growth will peg back GDP growth to 0.7% this year.
“Recent political developments including the restoration of powersharing and the installation of a new Stormont Executive offers the opportunity to unlock further growth potential within the Northern Ireland economy,” said EY.
Amid global political uncertainties and wars, EY said that securing economic prosperity will require training of the workforce, “investing in necessary infrastructure, accelerating the green transition and harnessing the transformative potential of new technologies such as artificial intelligence”.
