For 2025, Ireland is forecast to see GDP growth of 3.6%, up from 3.2% predicted in the Winter Economic forecast (published on 15 February 2024).
Headline inflation meanwhile is set to continue easing to 1.9% in 2024 and 1.8% in 2025 (from 5.2% in 2023), a little lower than predicted in the Winter forecast.
The budget surplus is projected to decrease marginally in 2024 and 2025.
Read the full forecast for Ireland here.
For the EU as a whole, the Commission's Spring Forecast projects GDP growth in 2024 at 1.0% in the EU and 0.8% in the euro area. In 2025, GDP is forecast to accelerate to 1.6% in the EU and to 1.4% in the euro area.
EU HICP inflation is expected to fall from 6.4% in 2023 to 2.7% in 2024 and 2.2% in 2025. In the euro area, it is projected to decelerate from 5.4% in 2023 to 2.5% in 2024 and to 2.1% in 2025.
Commissioner for Economy, Paolo Gentiloni, said: “The EU economy perked up markedly in the first quarter, indicating that we have turned a corner after a very challenging 2023. We expect a gradual acceleration in growth over the course of this year and next, as private consumption is supported by declining inflation, recovering purchasing power and continued employment growth. Government deficits should inch lower following the withdrawal of almost all energy support measures, but public debt is set to increase slightly next year, pointing to a need for fiscal consolidation while protecting investment. Our forecast remains subject to high uncertainty and – with two wars continuing to rage not far from home – downside risks have increased”.
For more information
European Commission press release: Spring 2024 Economic Forecast: A gradual expansion amid high geopolitical risks
Details
- Publication date
- 15 May 2024
- Author
- Representation in Ireland