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.
Medicine Shortages
There is a current shortage of approximately 300 medicines in Ireland, placing “phenomenal pressure” on pharmacists nationwide according to the President of the Irish Pharmacy Union (IPU). The IPU has warned that most pharmacists fear it will become an even bigger issue over the coming year.
