Goodbody Stockbrokers <\/a>earlier this week.<\/p>\nBank of Ireand predicts the domestic economy will expand by 3.4% this year and 2.6% in 2026.<\/p>\n
It estimates Gross Domestic Product, which includes impact of multinationals, will be 10.7% this year, up from an earlier forecast of 8.1%.<\/p>\n
On housing, Bank of Ireland forecasts that 34,500 homes will be built in 2025.<\/p>\n
It has left its projection for home building unchanged after the Central Statistics Office published figures yesterday showing a 4% increase in residential construction in the third quarter of this year.<\/p>\n
The bank’s chief economist Conal MacCoille said that housing supply figures show “there are two to three years of apartment supply in the capital still under construction.”<\/p>\n
He estimates house price will rise by 6% this year and 3.5% in 2026.<\/p>\n
Mr Mac Coille said that 33,000 homes had been built in the 12 months to the end of September which was the highest number of units since the Celtic Tiger period.<\/p>\n
He said Irish exports to the US, especially pharmaceuticals, remain largely tariff-free following a White House deal with Pfizer which will see reduced prices on some drugs sold in the US.<\/p>\n
Mr MacCoille said the new 15% tariff only affects 2% to 3% of exports posing “minimal impact” compared to other EU manufacturing-heavy economies.<\/p>\n
“While the fundamentals of the economy are strong, risks remain. The reliance on corporate tax revenues from a small number of firms is a fiscal vulnerability. A sudden shortfall could necessitate swift budgetary adjustments,” he added.<\/p>\n
Speaking on RTE’s Morning Ireland, Mr MacCoille said we saw a big surge in exports early in the year and more of that looks to be new pharmaceutical production facilities coming online, not a front-running of tariffs.<\/p>\n
“Looking ahead to next year, obviously tariffs are the big concern, but for now the majority of Irish exports remain exempt, so that’s pharmaceuticals,” he said.<\/p>\n
“Recently we saw the White House do deals with Pfizer and also AstraZeneca, so there’s been a kind of contradiction in the White House’s approach; do they want tariffs that would raise the cost of pharmaceuticals, or get discounts for Medicare?”.<\/p>\n
“What it looks like is happening is that they’re doing deals with the large multinationals to get those discounts in Medicare which means Ireland’s in a reasonably enviable position where the majority of our exports are still going to be exempt,” he added.<\/p>\n","protected":false},"excerpt":{"rendered":"Bank of Ireland has revised upwards its forecast for growth for the economy. It comes after a similar…\n","protected":false},"author":2,"featured_media":80510,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":["post-101122","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/101122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=101122"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/101122\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/80510"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=101122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=101122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=101122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}