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Representation in Ireland
News article15 May 2023Representation in Ireland

Spring 2023 Economic Forecast: An improved outlook amid persistent challenges

Following double digit growth in 2022, Ireland's GDP is projected to remain on a solid growth path of 5.5% in 2023 and 5.0% in 2024, according to the European Commission Spring 2023 Economic Forecast published today.

Spring 2023 Economic Forecast for Ireland: table showing the key figures for Ireland for 2022, 2023 and 2024 for GDP, inflation, unemployment, general government balance as a % of GDP, gross public debt as a % of GDP and current account balance as a % of GDP

Net exports are the main driver of economic activity, which is also supported by resilient private consumption. Inflation is estimated to have peaked at 8.1% in 2022 and is set to moderate gradually throughout 2023 to reach 2.6% in 2024. The budget surplus is projected to increase further in 2023 and 2024.

The European Commission estimates that the European economy continues to show resilience in a challenging global context. Lower energy prices, abating supply constraints and a strong labour market supported moderate growth in the first quarter of 2023, dispelling fears of a recession. This better-than-expected start to the year lifts the growth outlook for the EU economy to 1.0% in 2023 (0.8% in the Winter interim Forecast) and 1.7% in 2024 (1.6% in the winter). Upward revisions for the euro area are of a similar magnitude, with GDP growth now expected at 1.1% and 1.6% in 2023 and 2024 respectively. On the back of persisting core price pressures, inflation has also been revised upwards compared to the winter, to 5.8% in 2023 and 2.8% in 2024 in the euro area.

The EU economy is in better shape than we projected last autumn. We avoided a recession and are set for moderate growth this year and next. Yet risks are too plentiful for comfort: we must remain vigilant.

Paolo Gentiloni, Commissioner for Economy

 

More Information:

Full press release

Spring 2023 Economic Forecast

Forecast for Ireland

Details

Publication date
15 May 2023
Author
Representation in Ireland