• Mon. Jun 24th, 2024

Inflation and Multinational Companies: The Economic Challenges and Growth Prospects for Ireland’s Domestic Economy

BySamantha Jones

Mar 27, 2024
The economy of Ireland is expected to grow over the next two years.

According to the Economic and Social Research Institute (ESRI), Ireland’s domestic economy is projected to experience solid growth over the next couple of years. The institute expects modified domestic demand (MDD) to increase by 2.3% this year and 2.5% next year. MDD is a measure that removes the influence of multinational companies on Ireland’s economy. Last year, MDD only grew by 0.5% due to factors like inflation and higher interest rates impacting spending and investment.

Although the Irish economy rebounded strongly after the pandemic, it slowed significantly in 2023. Higher inflation has negatively affected households, with the ESRI noting that there was no real growth in pay during 2022 and 2023. Real pay, which takes into account inflation, is an indicator of changes in living standards. Irish GDP, the primary measure of economic performance, is heavily distorted by the activities of multinational companies. Figures show that Irish GDP contracted by 3.2% in 2023, mainly because of reduced sales and exports by US pharmaceutical companies operating in Ireland.

Despite these challenges, the ESRI anticipates Irish GDP to recover in the next two years as global trade picks up. The institute also highlights the importance of addressing infrastructure bottlenecks for Ireland’s economic growth. These bottlenecks mainly involve issues in housebuilding, renewable energy, and public transport

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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