ESRI: Ireland's reliance on multinationals leaves the economy open to risks, but recession unlikely

Consumer consumption reached almost 6% this year but is expected to drop to just over 2% next year as shoppers tighten their belts

The ESRI’s final quarterly report for the year estimated that inflation will reach around 7.1% next year. Picture: Leah Farrell/RollingNews.ie

Heavy reliance on multinationals has left Ireland’s economy vulnerable to shocks, however a national recession is unlikely, according to new analysis.

Inflation is expected to remain at high levels next year and contribute to an international recession, which will affect Ireland’s open economy and lead to a sharp slowdown in growth. Economic and Social Research Institute (ESRI) research professor Conor O’Toole said: