Summary Q2 2024
Irish Economy
The Irish economy expanded by 5% of GNI according to the Central Statistics Office (CSO). In contrast to the increase in GNI, there was
a 5.5% fall in GDP due to reduced exports by multinational companies. GNI strips out the most distorting effects to give a more accurate picture of the real economy. Although the multinational sector contracted by 16.2%, the figures point to a recovering domestic economy with personal spending on goods and services rising by almost 5% in 2023.
Inflation
The euro area annual inflation rate was 2.5% in June 2024, down from 2.6% in May. A year earlier, the rate was 5.5%. In June 2024, the highest contribution to the annual euro area inflation rate came from services, followed by food, alcohol & tobacco, non-energy industrial goods and energy
Global Economy
Global economic recovery continues with easing inflation, improved supply, and strong labour markets boosting income and spending in Q1 2024. Despite a projected global GDP growth of 2.9% in 2024 and 3.1% in 2025, growth remains below pre-pandemic levels amid renewed inflationary pressures and geopolitical tensions.
Labour Market
Employment growth in Q2 2024 slowed with a modest year-on-year increase of 1.9%, the lowest since 2021, reaching 2.7 million. Forecasts predict further deceleration to 1.6% in 2024 and 1.5% in 2025 and 2026 due to post-pandemic base effects and reliance on net inward migration. The unemployment rate is forecast to average 4.5% through 2026.
