Quarterly Economic Commentary, Spring 2023

Key findings

• The economy has performed particularly well during the pandemic and appears to have weathered the energy crisis emanating from the war in Ukraine.
• The pace of growth in the domestic and international economies is set to be stronger in 2023 than had previously been expected.
• We forecast that modified domestic demand (MDD) will grow by 3.8 per cent in 2023 and 3.9 per cent in 2024.
• We expect inflation to moderate to 4.5 per cent in 2023 before easing to 3.5 per cent in 2024.
• Price levels are going to remain high which is likely to pose cost of living challenges.
• Sectoral contribution to corporation tax receipts in the Irish economy are increasingly concentrated.
• Employment numbers show a substantial increase in those employed in the pharmaceutical sector since the onset of the pandemic.