Economy to see robust growth this year and in 2026

While Irish economy is in 'good shape', policy shifts in the US are 'making for an unsettled external environment', EY Ireland forecast says

Employment growth is expected to be 2.2% this year and 2% next year, while inflation is expected to average out at 2% this year, with further interest rate cuts expected as a result. Picture: Denis Minihane.

Ireland’s economy is forecasted to see robust growth this year and continue that momentum into next year, but policy shifts in the US makes for an “an unsettled external environment”.

According to the consultancy firm EY’s latest forecast, modified domestic demand (MDD) will grow by 3.3% in 2025 and 3.2% in 2026. MDD is a measure of domestic economic activity that strips out the activity of the large multinationals based in Ireland.