But the threat from global trade tensions and challenges posed by infrastructure issues and stock market uncertainty could affect growth, KPMG economic experts warned, with the wider European region risking falling behind in the race for economic security if it fails to act. That compares to growth in Europe and the UK, which is expected to reach 1 per cent in terms of GDP. The US, meanwhile, is forecast to reach 3 per cent growth as data centres and artificial intelligence (AI) play a big role. Listen | 44:48“Ireland’s economic growth in 2025 far outpaced its European peers, underscoring its economic resilience. There is a real risk of a disconnect between strong economic growth and what people see in their wallets.”Employment growth is expected to remain positive, but moderate to 1.5 per cent, while unemployment is expected to settle around 5 per cent.

Source: The Irish Times December 31, 2025 10:34 UTC