Irish economy to contract this year as exports and investment shrinks

OECD has warned that Ireland's 'substantial' exposure to global risks could further weaken trade and government revenues

Modified domestic demand (MDD) - which excludes multinational activity and gives a more accurate account of the domestic economy - will decline sharply from 9.7% to 2.1% at the end of this year. Pic: Larry Cummins

Weaker exports coupled with a drop in investment will see the Irish economy decline for the first time since the financial crisis, with GDP set to fall by 0.6% in 2023. 

In its latest global outlook report published on Wednesday, the Organisation for Economic Co-operation and Development (OECD) warned that heightened global uncertainties, a weaker trading outlook and higher interest rates will have a downward effect on Irish exports and investment levels, which have already fallen dramatically in the first half of this year.