Irish economy to post significant growth despite Ukraine and inflation headwinds

The European Commission has forecast that inflation will weigh on household spending plans but consumption will grow nonetheless

Irish inflation, which is currently running at 7%, will average just over 6% this year before easing back to just over 3% in 2023, the new forecasts say.

Inflation will stay higher for longer, but the Irish economy will grow strongly despite facing global pressures from the fallout of the Ukraine war, the EU has predicted.

In its new spring economic outlook, the European Commission has forecast inflation will weigh on household spending plans, but that consumption will grow nonetheless, although at a slower pace than once thought, this year and in 2023.