Ireland had highest EU growth in 2022

The Irish economy showed significant growth in the fourth quarter of 2022, according to an estimate from the Central Statistics Office. The economy expanded by 3.5% compared to the previous quarter, and saw a growth of 13.5% compared to the same period in 2021. The manufacturing sector played a major role in driving the growth.

Goodbody Stockbrokers stated that the estimated GDP growth of 12.2% for last year places Ireland as the fastest growing economy in Europe in terms of GDP. Despite the challenges posed by the Covid-19 pandemic, the Irish economy saw a growth of 13.6% in 2021 and a cumulative GDP growth of 33% since 2019.

This is the first time the CSO has released an early estimate of the country’s economic growth. However, a more comprehensive report will be released in early March, which will provide a breakdown of the different sectors and a measure of modified domestic demand.

Goodbody Stockbrokers predicts a growth rate of 11.2% for 2022, followed by a slower growth of 2.3% in 2023. When measured by modified domestic demand, the growth rate is expected to decline to 0.7% in 2023 due to economic headwinds such as increased living costs and potential mortgage rate hikes.

Minister for Finance, Michael McGrath, welcomed the GDP estimate for the fourth quarter of 2022, stating that it reflects the continued strength of the multinational sector in Ireland and is broadly in line with the department’s projections at Budget time.

He also mentioned that the international data suggests that the economic downturn may not be as severe as previously expected, and inflation in Ireland has peaked earlier than anticipated. Despite various challenges, the labor market continues to perform well with an unemployment rate of 4.3% in December.