Economic outlook brightens but housing crisis could yet deepen, ESRI warns

The think tank increased its growth forecasts and lowered its projections for inflation this year

The ESRI estimates 27,000 new homes will be built this year, down from almost 30,000 units in 2022, as building costs soared.

The outlook for the Irish economy has brightened, but price pressures and higher-for-longer rate hikes will likely weigh on many households and hit key sectors such as house building, the Economic and Social Research Institute (ESRI) has warned. 

In its latest quarterly report, the leading think tank increased its growth forecasts and lowered its projections for inflation this year since its previous report in December.