Bank of Ireland has revised upwards its forecast for growth for the economy.

It comes after a similar move by Goodbody Stockbrokers earlier this week.

Bank of Ireand predicts the domestic economy will expand by 3.4% this year and 2.6% in 2026.

It estimates Gross Domestic Product, which includes impact of multinationals, will be 10.7% this year, up from an earlier forecast of 8.1%.

On housing, Bank of Ireland forecasts that 34,500 homes will be built in 2025.

It has left its projection for home building unchanged after the Central Statistics Office published figures yesterday showing a 4% increase in residential construction in the third quarter of this year.

The bank’s chief economist Conal MacCoille said that housing supply figures show “there are two to three years of apartment supply in the capital still under construction.”

He estimates house price will rise by 6% this year and 3.5% in 2026.

Mr Mac Coille said that 33,000 homes had been built in the 12 months to the end of September which was the highest number of units since the Celtic Tiger period.

He said Irish exports to the US, especially pharmaceuticals, remain largely tariff-free following a White House deal with Pfizer which will see reduced prices on some drugs sold in the US.

Mr MacCoille said the new 15% tariff only affects 2% to 3% of exports posing “minimal impact” compared to other EU manufacturing-heavy economies.

“While the fundamentals of the economy are strong, risks remain. The reliance on corporate tax revenues from a small number of firms is a fiscal vulnerability. A sudden shortfall could necessitate swift budgetary adjustments,” he added.

Article Source – Bank of Ireland upgrades Irish economic forecast

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