{"id":525113,"date":"2026-06-30T02:41:17","date_gmt":"2026-06-30T02:41:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/525113\/"},"modified":"2026-06-30T02:41:17","modified_gmt":"2026-06-30T02:41:17","slug":"strong-ecnomic-performance-but-significant-risks-remain-for-ireland","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/525113\/","title":{"rendered":"Strong ecnomic performance but significant risks remain for Ireland"},"content":{"rendered":"

Ireland\u2019s strong economic performance has given the Government a valuable opportunity to strengthen the country\u2019s long-term resilience, but significant risks remain from global uncertainty, housing shortages and the State\u2019s dependence on multinational tax receipts, according to the latest assessment from the International Monetary Fund<\/a> (IMF).<\/p>\n

In its annual Article IV Consultation, the IMF said the Irish economy <\/a>had remained resilient despite a series of external shocks, with modified gross national income estimated to have grown by around 4% in 2025.<\/p>\n

Growth was driven by strong consumer spending, investment and exports led by multinational enterprises (MNEs), while the Government continued to record a sizeable budget surplus thanks to robust corporation tax receipts.<\/p>\n

However, the Washington-based organisation expects growth to slow over the next two years, even if it remains relatively strong by international standards.<\/p>\n

Private consumption is forecast to weaken as employment growth and household incomes soften, while exports are expected to slow significantly during 2026.<\/p>\n

Inflation, which remained close to 2% during 2025, is projected to rise to around 3.5% this year due to higher energy prices before easing back towards the European Central Bank<\/a>‘s 2% target by 2028.<\/p>\n

The IMF <\/a>warned that Ireland continues to face considerable external risks, including the ongoing conflict in the Middle East, geopolitical tensions and increasing fragmentation of global trade.<\/p>\n

The country’s reliance on a relatively small number of multinational companies also remains a structural vulnerability.<\/p>\n

The report noted that rapid advances in artificial intelligence present both opportunities and new risks, including cybersecurity threats, while domestic supply constraints continue to weigh on productivity.<\/p>\n

The IMF said Ireland should use its current economic strength to prepare for future challenges rather than assuming recent resilience will continue.<\/p>\n

It urged the Government to maintain a broadly neutral fiscal stance, arguing that with the economy operating close to full capacity, additional spending could add unnecessary inflationary pressure.<\/p>\n

At the same time, it backed plans to accelerate public investment, particularly in infrastructure, provided projects are delivered efficiently.<\/p>\n

The Fund also called for a broader tax base to reduce the State’s dependence on corporation tax, recommending greater reliance on income tax, VAT and local property taxes to provide more sustainable long-term revenues.<\/p>\n

Housing remains one of Ireland’s biggest structural challenges, according to the IMF, which said achieving Government housing targets would require planning reforms, higher urban density, improved construction productivity and greater private investment.<\/p>\n

It also highlighted the need for investment in electricity infrastructure and renewable energy to improve energy security while supporting the green transition.<\/p>\n

\"IMF \"Housing remains one of Ireland’s biggest structural challenges, according to the IMF<\/p>\n

The IMF said Ireland’s financial system remains resilient but warned regulators should continue monitoring risks within the country’s large non-bank financial sector and remain vigilant against growing cyber threats.<\/p>\n

Looking further ahead, the organisation said Ireland was well placed to benefit from advances in artificial intelligence if workers are supported through reskilling initiatives and innovation policies.<\/p>\n

The IMF also argued that deeper integration within the EU Single Market and new international trade agreements would help Irish businesses diversify supply chains and strengthen long-term economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"Ireland\u2019s strong economic performance has given the Government a valuable opportunity to strengthen the country\u2019s long-term resilience, but…\n","protected":false},"author":2,"featured_media":525114,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[61,60,43],"class_list":["post-525113","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ireland","tag-ie","tag-ireland","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/525113","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=525113"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/525113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/525114"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=525113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=525113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=525113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}