The forecast published on February 14 says that the Irish economy should grow by 4.9% in 2023. This is significantly higher than the previous forecast of 3.2%, which was given in the fall of 2022.
The European Commission expects inflation in Ireland to be in the range of 4.4% compared with 8.1% in 2022. And in 2024, inflation should fall to 2.1%.
The report notes that in 2022, strong economic growth was facilitated by an increase in investments by 92%, mainly due to investments by multinational corporations. As a result, the country’s GDP grew by 12.2%.
Household savings and the good position of the labor market are expected to support economic growth further. At the beginning of the year, inflation will be high, but then it will decrease.
In general, it is predicted for the EU and the Eurozone that the recession predicted in November will not take place. EU GDP in 2023 will grow by 0.8%, and in the eurozone — by 0.9%.
Recall that although the UK economy avoided a recession at the end of 2022, a contraction of the economy is still possible in the future.