## Ireland: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Ireland

_IMF Staff Country Reports, June 11, 2025_

## Source details

**Canonical URL:** [Ireland: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Ireland](https://www.imf.org/en/publications/cr/issues/2025/06/10/ireland-2025-article-iv-consultation-press-release-staff-report-and-statement-by-the-567588)

## Other formats

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## Bibliographic details
- Published: June 11, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229012768.002

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### Overview
- 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 "housing and infrastructure deficits," but this should be implemented "within an appropriate overall spending envelope, ensuring value for money."
- Significant external downside risks to growth and public finances exist; these vulnerabilities stem from "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, including:
  - promoting cooperation in innovation between dynamic multinationals and domestic firms,
  - improving infrastructure,
  - continuing to engage in the EU to further strengthen the single market.

### Key Findings
- Economic performance:
  - Entered 2025 in a strong position.
  - Growth expected to continue but at a slower pace given global uncertainty.
- Fiscal stance:
  - Recommendation of a broadly neutral fiscal stance in 2025 and the medium term.
  - Priority to increase capital expenditure while maintaining an appropriate overall spending envelope and ensuring value for money.
- Investment needs:
  - Elevated public investment required to address housing and infrastructure deficits.
- External vulnerabilities:
  - Public finances and growth are vulnerable to shifts in external trade and tax policy.
- Financial sector:
  - Systemic risks have risen despite prior resilience of the financial system.

### Risks and Scenarios
- External downside risks:
  - Trade policy shifts and tax policy changes are identified as significant risks to growth and public finances.
- Geo-economic fragmentation:
  - Heightened global fragmentation increases systemic risk and necessitates policy responses to preserve economic integration benefits.
- Financial stability scenario:
  - While resilient to date, the financial system faces rising systemic risks in the current global environment.

### Policy Recommendations
- Fiscal policy:
  - Maintain a broadly neutral fiscal stance in 2025 and the medium term.
  - Increase capital expenditure to address housing and infrastructure deficits within a constrained overall spending envelope and with strong value-for-money safeguards.
- Structural and external-policy responses:
  - Promote cooperation in innovation between dynamic multinationals and domestic firms to mitigate fragmentation risks.
  - Improve infrastructure to support productivity and resilience.
  - Continue active engagement in the EU to further strengthen the single market and reduce vulnerability to external shocks.

*International Monetary Fund. "Ireland: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Ireland", June 11, 2025.*

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## Content in this bundle

- **1irlea2025001-print-pdf**
  - [1irlea2025001-print-pdf (Markdown version)](/-/media/files/publications/cr/2025/english/1irlea2025001-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [1irlea2025001-print-pdf (PDF)](/-/media/files/publications/cr/2025/english/1irlea2025001-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2025/06/10/ireland-2025-article-iv-consultation-press-release-staff-report-and-statement-by-the-567588_