Ireland Outlook – January 2025

Irish GDP to expand 4% in 2025

We have revised up our projections for the growth of Irish GDP (4.3%), modified domestic demand (4%) and employment (2.2%) in 2025. This reflects data for H2 2024 indicating the economy had stronger momentum than we anticipated. Also, distortions from ‘contract manufacturing’ have dissipated so GDP should rise in 2025. We still expect a 3% rise in consumption in 2025 as pay growth (4.5%) exceeds CPI inflation (2%) and tax cuts help disposable incomes. Housing completions of 42,500 and a modest recovery in non-residential construction will help core investment to grow 7%. Finally, public spending continues to rise rapidly and a 5% rise in 2025 will help domestic demand.

Read the Ireland Outlook in full here:

Bank of Ireland Ireland Outlook January 2025