Ireland’s economy to remain stable and prosperous till 2024 – ESRI

Ireland’s economy to remain stable and prosperous till 2024 – ESRI

Ireland's economy is expected to remain stable and prosperous till 2024, according to the Economic and Social Research Institute (ESRI).

As per the ESRI, Ireland's economy is expected to expand in the coming year as inflation is forecasted to remain steady.

According to the think tank's predictions, the State's domestic economic activity is anticipated to grow by 3.8% in 2023 and again by 3.9% in 2024, resulting in a surplus for both years.

According to the ESRI's latest economic report, inflation is expected to decrease significantly in the next few years, dropping from 4.5% in 2023 down to 3.5% by 2024. The reason for this is attributed to declining energy costs.

The report also highlighted a likely consequence of sustained high prices, which is that interest rates are much more likely to stay elevated for an extended period. This implies that low-income families will continue to feel financial strain.

Banking is facing a global crisis and if the recent Russian conflict with Ukraine intensifies, it could have grave implications for financial predictions. This will not only result in losses but also lead to more uncertainties.

February 2023 saw the State's unemployment rate drop to an enviable 4.3%, close to a historic low, with indications of a robust labour market in the foreseeable future.

According to ESRI, exports certainly gave a major boost to economic growth during 2022. Further, looking ahead, exports are expected to continue their supportive role in the upcoming years.

According to the ESRI, government balance sheets are likely to benefit from strong corporate tax revenue and exchequer receipts shortly. While this is advantageous, it's important to note that there is lots of reliance being placed on a few sectors such as pharma & ICT which can make the situation precarious.

Professor Kieran McQuinn from ESRI's report suggested that despite the volatility in the international markets, Ireland's economy is most likely to improve more than was previously predicted for 2023.

Dr Conor O’Toole, who co-authored the report, remarked: "Though inflation is likely to subside in 2023 compared to 2022, high price levels can still be troublesome for economically disadvantaged households.

All fiscal resources must be directed at those in need, for whom cost-of-living increases will be of real significance. All ongoing relief measures should be carefully crafted to cater to these individuals."