Willie O'Dea
Question:207. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance his Department’s latest economic forecasts for 2026; and if he will make a statement on the matter. [69698/25]
View answerThursday, 18 December 2025
Questions (207)
Written answers
My Department’s autumn economic forecasts are set out in the Economic and Fiscal Outlook which was published alongside Budget 2026. These forecasts were endorsed by the Irish Fiscal Advisory Council.
Despite recent external headwinds, my Department expects growth in the Irish economy to remain relatively solid in 2026. Modified Domestic Demand, my preferred measure for assessing the domestic economy, is expected to grow by 2.3 per cent next year. Strong momentum in consumer spending is projected to continue into 2026 with annual growth of 2.3 per cent also forecast.
Employment is projected to expand by 1.5 per cent next year with unemployment expected to remain relatively low and broadly consistent with 'full employment'.
Risks to the outlook are two-sided, though tilted to the downside; these risks are primarily external in nature. Most notably, a deterioration in the international economy – triggered, for instance, by a further escalation in geopolitical tensions – could have negative spill-overs to the Irish economy.