Ireland

Ireland - Economic forecast summary (May 2018)

 

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Economic activity in Ireland is projected to remain robust, but to ease gradually. Abstracting from volatile activities of multinational enterprises (MNEs), domestic demand will remain robust with solid employment growth and consumption. As the labour market tightens, wage pressures will be strong, feeding into higher inflation. Business investment will slow after its strong rebound, while the construction sector will retain its momentum.

The stance of fiscal policy will be mildly contractionary in both 2018 and 2019. The government should remain committed to improving the fiscal position, thus making room to use fiscal policy against potential negative shocks, notably that of Brexit. The implementation of a new development plan aiming at economic, environmental and social progress should be conditional on this commitment to improve the fiscal position, requiring projects to be carefully prioritised.

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Other information

Economic Survey of Ireland (survey page)

 

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