Economy growth boost into 2025..

ESRI expects development and lower inflation

IRELAND’S economy is expected to grow throughout this year and into 2025, a report shows.

The Economic and Social Research Institute said it anticipates growth in all economic activity indicators.

It states that Modified Domestic Demand will grow by 2.3% this year and 2.5% in 2025 while it anticipates GDP, heavily influenced by the multinational enterprise sector, to grow moderately at 2.5% this year and 2.3% in 2025.

The ESRI said these developments are driven by two factors.

The report states: “First, we expect

6.3 Percent inflation experienced in Ireland in 2023

an improvement in the performance of the traded sector of the economy which had seen a decline in 2023. “Second, we expect the domestic economy to continue to post modest growth for the coming two years.”

The increase in the cost of living has been one of the major challenges facing the economy over the past two years.

The report states that, overall, the inflation rate is decreasing, primarily driven by the decline in energy prices. The ESRI

Kieran Mcquinn said it expects this trend to continue and for consumer price inflation to increase by 2.3% in 2024 and 2% in 2025. This is compared with 6.3% inflation in 2023.

Author Professor Kieran Mcquinn, of the ESRI, said: “Unlike 2023, we expect all major indicators of economic activity to register positive growth in 2024 and 2025 indicating likely stable growth over the period.” ESRI’S Dr Conor O’toole added: “Consumer prices increased very rapidly over the past number of years, creating notable challenges for many households. However, we expect prices to rise at a much more modest

pace for 2024 and 2025.”

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