IMF Staff Country Reports

The 2025 Article IV Consultation discusses that the Irish economy has performed well and entered 2025 in a strong position. The domestic economy is projected to continue growing, albeit at a slower pace in a highly uncertain global environment. A broadly neutral fiscal stance with higher capital expenditure is appropriate in 2025 and the medium term. Ireland needs to raise public investment to address its housing and infrastructure deficits, but this should be done within an appropriate overall spending envelope, ensuring value for money. There are significant external downside risks to growth and public finances, which are vulnerable to external trade and tax policy shifts. The financial system has been resilient but systemic risks have risen in a highly uncertain global environment. Mitigating policies are needed to guard against risks from geo-economic fragmentation. These include promoting cooperation in innovation between dynamic multinationals and the domestic firms, improving infrastructure, and continuing to engage in the EU to further strengthen the single market.