Financial Intermediary Alerts: Details Revealed
Irish Economic Growth Forecasted to Moderate due to Global Uncertainty
An analysis by the AIB Economic Commentary reveals that Irish economic growth is expected to slow down in the coming years, principally due to heightened global uncertainty and potential trade tensions. This slowdown may impact both global and Irish growth rates.
Modified domestic demand is projected to grow by 2.3% in 2025, 2% in 2026, and 2.6% in 2027. The labour market will continue to expand, but the pace of jobs growth is anticipated to slow after a 2.7% rise in employment in 2024. This decline is projected at 2% in 2025, 1.5% in 2026 (likely a typo; possibly meant 1.5% in 2027), and 1.8% in 2027.
Consumer spending has been robust but is predicted to moderate as households increase savings in response to a more uncertain macroeconomic environment. Some business sectors, particularly export-oriented ones, may postpone planned investments. Despite these challenges, Ireland is considered to have built up resilience to withstand potential trade shocks in the short term. This resilience is attributed to both public and private sector balance sheets exhibiting low debt and high savings.
The report also suggests that changes in the US tax code could affect Ireland's attractiveness as a destination for foreign direct investment (FDI), contributing to the headwinds facing Irish economic growth.
The Goodbody Equity Morning Wrap and the Seaspray Financial Weekly Update did not reveal specific content or key points in the available sources.
Investing in Irish business may face challenges due to potential trade tensions and a more uncertain global economy, as forecasted by the AIB Economic Commentary. Despite a robust labor market and savings, consumer spending and some export-oriented business investments could slow down, impacting the nation's overall economic growth.
