Ireland avoids recession in 2023 but EU slashes GDP outlook 

The economy, which avoided recession in 2023 when measured by modified domestic demand, will continue to grow this year

The EU projects that Irish GDP will grow only 1.2% this year, reflecting the lingering effects from the 'sustained weakness' for pharma exports in 2023

Ireland’s growth outlook has significantly deteriorated this year as a hangover from weak pharma exports in 2023 continues to weigh on the economy, even as the prospects for employment remain much brighter, according to the EU Commission.

In its new winter update, the Commission has rowed in with other forecasters who see only muted growth in the economy this year, at least when measured in terms of GDP, but who nonetheless project healthy economic growth when measured by alternative measures that reflect household spending.