Trade tensions becoming a risk for Ireland's small and open economy, Central Bank warns 

The Central Bank’s latest Financial Stability Review noted that while global economic growth has been stable — after the inflationary crisis — some indicators of activity have weakened, particularly in Europe

According to the Central Bank of Ireland's latest Financial Stability Review, Ireland’s economy remains resilient with modified domestic demand expected to grow this year and next year at a faster pace than previously expected. File photo: Leah Farrell/Rollingnews.ie

As inflationary pressures recede and interest rates come down, other geopolitical risks such as international trade tensions are becoming more of an issue for Ireland’s small and open economy, the Central bank of Ireland has warned.

Governor of the Central Bank Gabriel Makhlouf said a “protectionist and fragmented world” has negative implications for “economic activity domestically and internationally, as well as for the resilience of households, firms and the financial sector”.