With "falling inflation and a shift in the interest rate cycle", the Irish economy and labour market will see expansion after a slowdown in 2023.
According to the latest economic outlook report from consulting firm Ernst & Young, the Irish economy is expected to grow solidly in 2024 and outpace most of its peers.
After five consecutive quarters of declining GDP (gross domestic product), EY expects GDP to grow by 22%, which will grow by 38%。At the same time, adjusted domestic demand, a better indicator of domestic activity, is expected to grow by 22% and 25%。
The company also expects further growth in employment, with employment increasing by 16%, which will grow by 18%。"The labor market is very strong and the number of people employed is currently at an all-time high," it said. ”
After experiencing highs in 2022 and early 2023, inflation is also expected to slow and EY**, with overall prices rising by an average of 3% by 2024. It also noted that businesses, exporters and some mortgage holders could expect interest rate cuts sometime in 2024. The company also ** the Northern Ireland economy will expand moderately.
The Ernst & Young report also highlighted the "strong" performance of the island's two labour markets, noting that employment in Ireland rose to a record high of 2.66 million last year. Despite layoffs at some well-known tech companies, employment in the IT industry has increased to more than 300,000, the report said.
Loretta O, Chief Economist, Ernst & Young Ireland'"After strong growth in 2021 and 2022 and some normalization in 2023, we expect economic growth in 2024 to be quite robust," Sullivan said. ”
"While the international economic environment remains relatively subdued and tight monetary policy is having an impact, deflation is helping to restore the purchasing power of households," she said. ”
As the European Central Bank and the Bank of England begin to ease monetary policy, financing conditions for corporate investment become more favourable, and partner demand improves, and economic momentum will strengthen. With all this in mind, the outlook for 2025 is even stronger. ”
"The Irish economy has many advantages, but in order to keep pace with the global market, we also need to nurture the seeds of future economic growth by training and upskilling our workforce, investing in the necessary infrastructure, accelerating the green transition and harnessing the transformative potential of new technologies such as artificial intelligence," she said. ”
The EY report also highlights the risks posed by geopolitical deterioration.
While there are many positives, there are still some headwinds globally. Geopolitical tensions are very high, especially the ongoing war in Ukraine, the conflict in the Middle East and the recent attack on shipping in the Red Sea, which are disrupting the global ** chain. ”
"More than half of the world's population is eligible to vote in the 2024 elections, which is also a year of significant changes in the elections, bringing with them a degree of uncertainty," she said. ”