The Central Bank of Ireland thinks data will show Ireland is in a recession for the multinational-dominated economy but says domestic activity will continue to expand. GDP is set to recover to grow by 2.5pc next year before rising to 4.5pc in 2025 and 4.2pc in 2026, the bank said in its latest quarterly bulletin. However, the banks said higher wages could push up inflation next year if firms try to recoup costs by increasing prices. “The multi-faceted nature of the economy frequently makes it difficult to decipher how economic conditions in Ireland are changing,” said Robert Kelly, the Central Bank’s director of economics and statistics. The biggest risk will come from lower domestic spending or “sector-specific reasons” such as a renewed fall in pharmaceutical or semiconductor exports.

Source: Irish Independent December 19, 2023 04:06 UTC