Ireland’s domestic economy is expected to experience solid growth in the coming years, according to the Economic and Social Research Institute (ESRI). The institute forecasts that modified domestic demand (MDD) will grow by 2.3% this year and 2.5% next year. MDD is a measure that removes the influence of multinational companies on the Irish economy.

Inflation and higher interest rates have affected consumption and investment, leading to a modest growth rate of only 0.5% in MDD last year. Despite this, real wages, which take inflation into account, have been an indicator of change in standard of living in Ireland. However, higher inflation has had a negative impact on households in recent times.

The institute also notes that Ireland’s GDP is heavily skewed by the activities of multinational companies operating in the country. Although it slowed significantly in 2023, ESRI predicts that Irish GDP will recover over the next two years as global trade picks up. However, addressing infrastructure bottlenecks remains crucial for sustainable economic growth in Ireland in the coming years.

For instance, plans for an underground rail link between Dublin Airport and the city center have been ongoing for more than two decades and are now at the public planning consultation stage. Addressing issues such as house building, renewable energy sources and public transport will be key to sustainable economic growth in Ireland in the near future.

Overall, despite some challenges faced by the Irish economy, ESRI forecasts that it will continue to experience solid growth over the next few years with proper attention given to addressing infrastructure bottlenecks.

By Samantha Johnson

As a dedicated content writer at newspuk.com, I immerse myself in the art of storytelling through words. With a keen eye for detail and a passion for crafting engaging narratives, I strive to captivate our audience with each piece I create. Whether I'm covering breaking news, delving into feature articles, or exploring thought-provoking editorials, my goal remains constant: to inform, entertain, and inspire through the power of writing. Join me on this journalistic journey as we navigate through the ever-evolving media landscape together.

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