Bank of Ireland increases growth forecast for domestic economy for 2025
Bank of Ireland has increased its growth forecast for the domestic economy for this year.
It said modified domestic demand will expand by 4% compared to an earlier projection of 3%.
It has forecast that employment will grow by 2.2% and Gross Domestic Product (GDP), which includes multinational activity, will grow by 4.3%
The bank said house completions will reach 45,500 which will contribute to an increase in investment spending.
That compares to 30,000 homes built in 2024.
Bank of Ireland forecasts a 3% rise in consumer spending driven by a 4.5% increase in consumer pay growth.
Bank of Ireland Chief Economist Conall MacCoille said: “The Irish economy had far more momentum in late 2024 than excepted, recording an exceptional pace of job creation.”
He added the exports sector had performed well which has prompted Bank of Ireland to increase its forecast for GDP.
He said pay growth is now exceeding inflation so “Irish households should enjoy real income growth in 2025, aided by Budget 2025 tax cuts”.
But Mr MacCoille warned the risk to the forecast was a breakdown in global trade relations.
He said: “Far more radical tariff/tax proposals from the Trump administration would be required to harm the economy in 2025.”
Article Source – Bank of Ireland increases growth forecast for domestic economy for 2025 – RTE
