## Ireland: 2023 Article IV Consultation-Press Release; and Staff Report

_IMF Staff Country Reports, December 15, 2023_

## Source details

**Canonical URL:** [Ireland: 2023 Article IV Consultation-Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2023/12/14/ireland-2023-article-iv-consultation-press-release-and-staff-report-542470)

## Other formats

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## Bibliographic details
- Published: December 15, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400262920.002

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### Overview
- The 2023 Article IV Consultation highlights that Ireland’s economy has shown remarkable resilience in the face of consecutive shocks and is well-positioned to achieve a soft landing.
- Growth is expected to moderate to a still solid level in 2023-24, from a very high base, as tighter financial conditions, domestic capacity constraints, and weakening external demand weigh on the economy.
- Tighter financial conditions, persistent inflation, and rising vulnerabilities in the commercial real estate market with linkages to leveraged non-banks call for continued heightened vigilance of financial stability risks.

### Growth outlook and macroeconomic conditions
- Growth projection: moderate to a still solid level in 2023-24 (from a very high base).
- Key downside pressures:
  - Tighter financial conditions.
  - Domestic capacity constraints.
  - Weakening external demand.

### Inflation and monetary policy interactions
- Persistent inflation is a concern; monetary tightening is under way.
- Continued fiscal prudence is warranted to complement monetary tightening in sustaining disinflation and to build adequate buffers for the future.

### Fiscal policy assessment and recommendations
- The 2023 fiscal stance is appropriate.
- Fiscal policy should avoid adding to aggregate demand amid still elevated inflation; tax revenue over performance should be saved.
- Fiscal policy should support growth-enhancing investment and broaden the tax base.
- The authorities’ decision to save part of excess corporate income tax revenues in two savings funds is welcome.

### Financial stability risks
- Tighter financial conditions and persistent inflation heighten risk.
- Rising vulnerabilities in the commercial real estate market, with linkages to leveraged non-banks, require continued heightened vigilance.

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## Content in this bundle

- **1irlea2023001**
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_Source: https://www.imf.org/en/publications/cr/issues/2023/12/14/ireland-2023-article-iv-consultation-press-release-and-staff-report-542470_