The Irish economy has performed well, with the domestic economy, as measured by the Modified Gross National Income, estimated to have grown by about 4% in 2024, according to the International Monetary Fund’s annual review of the Irish economy.
The IMF Staff Report for the 2025 Article IV Consultation said the domestic economy is projected to continue growing, albeit at a slower pace in a highly uncertain global environment.
It also noted there are significant external downside risks to growth and public finances, which are vulnerable to external trade and tax policy shifts.
Ireland’s 2025 Article IV Consultation was set against the backdrop of Budget 2025 which was framed in the context of a continued need to improve public services and accelerate infrastructure to support a growing population and the competitiveness of the Irish economy.
The Report sets out the views of the IMF on the current position of the Irish economy and identifies key structural factors that will have a bearing on domestic living standards in the years ahead.
The Minister for Finance Paschal Donohoe said he welcomed the IMF’s assessment of the results achieved and noted the risks highlighted in the report.
“I note and share the IMF’s assessment of external risks, notably the reversal of globalisation, the ongoing disruption caused by regional conflicts, domestic capacity constraints, and the uncertainty in relation to corporation tax receipts,” said Minister Donohoe.
“While I acknowledge Ireland’s vulnerability to the rise in global uncertainty, our economy has demonstrated resilience in the face of consecutive large shocks.
“I acknowledge the IMF’s recommendation of a broadly neutral fiscal stance for the upcoming budget and five-year fiscal plan.”
Minister Donohoe said the Programme for Government has committed to delivering a clear and credible macroeconomic and fiscal framework and one that would prioritise continued economic resilience through investment in capital spending and funds for future needs.
“I welcome the IMF’s strong support for the two savings funds which the Government has established. By the end of this year, I expect a total of €16 billion to be saved in the funds.”
