Ireland's Domestic Economy Forecast to Grow 2.7% in 2024, EY Reports

Ireland's domestic economy is projected to expand by 2.7% this year, according to a recent forecast from tax consultancy EY. The organization also anticipates an average inflation rate of 3.1% for the year, following a sharp increase to 3.6% in March, primarily driven by surging energy prices attributed to the Iran war.

EY further predicts a 1.8% increase in employment within Ireland this year. Household spending is expected to remain robust through 2026, rising by 2%, supported by a strong job market and increasing wages.

Dr. Loretta O’Sullivan, EY’s chief economist, emphasized the significance of consumer spending as a key indicator of domestic economic health. She stated, «Consumer spending is a key indicator of the health of the domestic economy and even with the significant energy price impact we are still forecasting this to increase this year and next.»

Dr. O’Sullivan also noted Ireland's successful navigation of US tariffs last year, identifying the management of exposure to rising energy prices as this year's primary challenge. She concluded, «We are projecting more moderate but still decent growth this year, something many of our peer nations will not be expecting.»