Bank of Ireland has forecast that the domestic economy will expand by 3.5% this year and 2.5% in 2027.<\/p>\n
It also expects just under 40,000 homes will be built this year up from 36,000 completed last year.<\/p>\n
The bank says the measure of the economy which includes the multinational activity, Gross Domestic Product, will fall by 3% this year as the surge in pharmaceutical exports which was experienced in 2025 unwinds.<\/p>\n
It has revised downwards its forecast for inflation for this year as oil prices trade at around $90 per barrel down from their peak of almost $118 after the Iran war broke out.<\/p>\n
Bank of Ireland says the phased withdrawal of Government supports means inflation will be 3.1% this year and 2.7% next year.<\/p>\n
The bank also says job creation is flattening off and employment is forecast to grow 1.1% this year and 1.5% in 2027.<\/p>\n
“We expect housing completions to rise to 39,600 this year and 42,000 in 2027,” Conall Mac Coille, Bank of Ireland’s chief economist, says in the bank’s revised economic forecasts.<\/p>\n
Many observers believe between 50,000 and 60,000 homes need to be built annually to satisfy the demand for accommodation.<\/p>\n
Mr Mac Coille adds Ireland will have the fastest growing construction sector among 19 European countries over the next two years with strong output in non-residential and civil engineering activity.<\/p>\n
He says that foreign direct investment is benefiting from development of weight loss drugs and the AI driven investment cycle.<\/p>\n
“Eli Lilly and Novo Nordisk have both recently expanded their facilities in Ireland. Machinery and equipment spending was up 17% year-on-year in the first quarter of 2026, helped by AI-related investment in data centres. Intel announced a \u20ac5 billion investment in its Irish plant in response to ongoing demand for semiconductors,” he notes.<\/p>\n","protected":false},"excerpt":{"rendered":"Bank of Ireland has forecast that the domestic economy will expand by 3.5% this year and 2.5% in…\n","protected":false},"author":2,"featured_media":425180,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":["post-561657","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\/561657","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=561657"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/561657\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/425180"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=561657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=561657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=561657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}