Moderate Growth Forecasts for the Irish Economy in 2023 according to EY Ireland’s latest Economic Eye report.
According to EY Ireland’s latest Economic Eye report, The Republic’s economy is expected to resume growth in 2023, albeit at a more moderate pace compared to previous years.
The accountancy firm forecasts GDP growth of 4.8 percent this year and 4.3 percent in 2024, down from the significant 9.4 percent in 2022.
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Despite the recent technical recession, as indicated by Central Statistics Office data, the economy has shown resilience and recorded growth in vital sectors like information technology, financial services, construction, and hospitality.
The authors of the report anticipate continued economic activity, supported by factors such as easing inflationary pressures, job gains, and efforts toward infrastructure, digitalization, and decarbonization.
However, higher borrowing costs and relatively subdued growth in trading partners pose challenges.
On a positive note, employment has seen a sharp rebound on both sides of the border following the pandemic, with unemployment rates at or near historic lows.
The labor market is projected to remain tight in the coming period, with further employment growth and only a slight increase in the unemployment rate expected. To address this measures to enhance the labor force, such as increasing the participation rate and focusing on upskilling and retraining, will be crucial. Employers offering flexibility will also play an important role in ensuring a resilient workforce.
Nevertheless, there are some headwinds in key sectors like tech, compounded by tighter monetary policies.
However, the waning of the energy price shock from the previous year will act as a tailwind for households and businesses.
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Despite the challenges, the report underscores the potential for growth and resilience in the Republic’s economy, driven by various factors such as infrastructure development, digital transformation, and strategic labor force measures.
Adapting to global uncertainties and fostering flexibility in employment will be essential in sustaining the positive economic trajectory.
Source: Irish Times