Ireland’s economy is projected to grow overall by 5.5% in 2022, supported by a rapidly recovering labour market, a gradual reduction of large household savings through consumption and a relatively benign financial situation in the corporate sector, according to the European Commission’s Winter 2022 Economic Forecast released today. Growth in 2023 is forecast at 4.5%.
The Commission also estimates that Ireland's annual real GDP growth in 2021 will be 13.7%, somewhat weaker than the estimate of 14.6% in the European Commission Autumn Forecast. The analysis points out that growth in the fourth quarter of 2021 is estimated to have been positive, supported by strong exports, especially in the information and communication sector, though restrictions re-introduced due to the Omicron variant negatively affected end-year retail sales and business confidence. Production by multinationals was very volatile in October and November, adding uncertainty regarding the final quarter.
The Winter 2022 Economic Forecast projects that, following a notable expansion by 5.3% in 2021, the EU economy will grow by 4.0% in 2022 and 2.8% in 2023. Growth in the euro area is also expected at 4.0% in 2022, moderating to 2.7% in 2023. The EU as a whole reached its pre-pandemic level of GDP in the third quarter of 2021 and all Member States are projected to have passed this milestone by the end of 2022.
Full document: Winter 2022 Economic Forecast
- Publication date
- 10 February 2022
- Representation in Ireland