Domestic economy to grow by 2.3% this year, increasing further in 2025 [Video]

The domestic economy in Ireland is continuing to perform well in spite of a flat headline GDP, according to the latest EY Economic Eye projections.

This is on the back of strong domestic growth and buoyant tax receipts, combined with record numbers in employment and low inflation for the rest of the year and into 2025.

Economic activity in the domestic economy, as measured by Modified Domestic Demand, is forecast to grow by 2.3% this year, increasing to 3.2% in 2025.

Ongoing volatility in the multinational sector means a slight reduction in GDP by 0.3% is expected for 2024, however this is forecast to rebound strongly in 2025, increasing by 4.5%.

The number of people employed in ROI stood at 2.75m in the second quarter of 2024, with income tax receipts indicating hiring continued in the third quarter.

EY’s autumn forecast has revised up employment, with growth now projected to reach 2.2% this year and 1.8% in 2025.

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