Irish economic growth forecast revised up on strong spending

Bank of Ireland's 2025 GDP forecast for the Irish economy has been revised upwards to 4.3% 

Economists say consumer spending will rise by 3% this year, driven by a 4.5% increase in pay growth, outpacing the 2% consumer price index inflation rate. Picture: iStock

Bank of Ireland has revised its GDP forecast for the Irish economy this year to 4.3%, on the back of stronger data in the second half of last year showing more momentum than anticipated and less distortion related to multinational manufacturing.

Economists said consumer spending will rise by 3% this year, driven by a 4.5% increase in pay growth, which outpaces the 2% consumer price index (CPI) inflation rate.