Summary Q1 2024
Irish Economy
The latest Central Bank quarterly report for Q1 2024 expects the domestic economy to grow at a moderate pace; 2.2% in 2024, 1.9% in 2025 and 2% in 2026.
Inflation
Inflation in the Eurozone was 2.4% in March 2024, a decrease from 2.6% in February. A year earlier the rate was 6.9%. Energy prices, which had increased last year as a result of Russia’s invasion of Ukraine, continued to reduce, with the rate of deflation moving from -3.7% to -1.8%.
Global Economy
The global economy is poised for a second consecutive year of slower growth, largely attributed to high interest rates. The Q1 2024 baseline forecast maintains a global real GDP growth projection for 2024 at 2.7%, consistent with Q4 2023, with a forecast of 3.1% growth in 2025.
Labour Market
The labour market remains near full capacity, though employment growth has decelerated, and overall labour force expansion is anticipated to be below the long-run average. Despite this, the unemployment rate remains near historic lows. Given projections for modest economic growth, the unemployment rate is forecast to average 4.5% through 2026.
Insolvencies
When comparing Q1 2024 to Q1 2023, data shows a 37% increase in insolvencies. If this trend continues there would be between 900 and 1,000 insolvencies by the end of the year.
