Summary Q1 2023
Global economic trends
The IMF’s World Economic Update forecast that global growth will fall to 2.8% in 2023. Advanced economies are expected to see a growth slowdown from 2.7% in 2022 to 1.3% in 2023.
Rising prices
The Irish Central Bank expects inflation to average 5% in 2023, with the rate of increase in energy prices forecast to decline rapidly as the year progresses. HICP inflation is forecast to moderate to 3.2% and 2.2% in 2024 and 2025, respectively.
Irish economy
After falling by an estimated 0.8% in 2022, the Central Bank of Ireland expects average real household disposable income to increase by 2.1% and 2.3% in 2023 and 2024, respectively.
Banking crisis
Instability gripped the financial markets during the first quarter following the collapse of Silicon Valley Bank. The Swiss bank Credit Suisse was bought out by UBS after a series of scandals and a loss of confidence from investors.
Inflation
Inflation in the eurozone was 6.9% in March 2023, a decrease from 9.2% at the end of the previous quarter. Energy prices have continued to plummet with inflation at -0.9% vs 25.7% in December 2022.
