The ESRI has upgraded its outlook for economic growth this year, amid falling inflation, an expected normalisation of exports and moderate expansion of the domestic economy.
In its Quarterly Economic Commentary, the institute forecasts that the domestic economy as measured by Modified Domestic Demand will grow by 2.3% in 2024, up from its prediction of 2% in December, and will expand by 2.5% next year.
Public spending will also be stronger than the ESRI estimated in December, growing by 1.2% this year. The ESRI says the reducing inflation outlook will lead to a return to growth in real incomes, which could grow by around 2.2%. "The challenge is how do you bring about that investment in an economy that is growing as strongly and as robustly as the Irish economy is," said Kieran McQuinn.
"And one could argue maybe even contractual, you may even need to take some money out of the economy going forward given how robustly it is performing, given that you are going to be putting money in other areas of the economy, particularly through hiking investment levels," he added.
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