Ireland Outlook – September 2026

New Irish Economic Forecasts

We have revised up our forecast for Irish GDP to a shallower 1.2% fall in 2026 – still contracting as the surge in exports last year has unwound, but followed by 3.1% growth in 2027. HICP inflation is now expected to rise to 4% in the final months of 2026, averaging 3.2% next year. However, pay growth of 3.5%, job creation of 2% and €1.5bn of tax cuts planned in Budget 2027 should still allow consumer spending to expand by 1.8% in 2027. Ireland is also benefitting from the AI-related investment cycle so we have revised up our forecast for modified domestic demand to 3.8% growth in 2026 and 2.8% in 2027. We still expect house price inflation of 4% through 2026 and 3.5% in 2027, with housing completions of 39,600 this year, rising to 42,000 next year.

Read the Ireland Outlook in Full Here:

Bank of Ireland Irish Outlook September 2026