Ireland is one of the world's most dynamic economies. The economy was in a strong position prior to the pandemic, with robust growth, balanced public finances and a labour market close to full employment. The Covid-19 pandemic, and the unprecedented social and economic measures introduced to suppress the virus, have had a significant impact on the Irish economy and public finances.
The Trade and Co-operation Agreement between the EU and UK and the rollout of Covid-19 vaccines have improved the outlook for the economy. Rising vaccine coverage will allow for a more significant easing of containment measures over the summer, with positive implications for economic activity. Conditioned upon these assumptions, modified domestic demand (MDD) is projected to increase by 2.5 per cent this year (GDP growth of 4.5 per cent). MDD growth is expected to accelerate next year, reaching 7.5 per cent (GDP by 5 per cent).
Did you know
The value of goods exports from Ireland rose to €160.8bn in 2020, the highest level on record, and an increase of 5% over 2019.