Ireland Market View – H1 2024

The prospects for the economy this year look fairly healthy. Households will benefit from cooling inflation, while the low unemployment rate and growing size of the workforce will further support consumption. For construction, housebuilding, which is set to be a key battleground in the upcoming general election, should expand. However, the tight labour market, alongside challenges with planning and water shortages, is likely to prevent it from developing as fast as politicians would like.

Meanwhile, the infrastructure sector should continue to perform well, with Project Ireland 2040 driving growth. By contrast, the non-residential building sector, which had a particularly difficult 2023, may struggle again. High interest rates and a weak global economy are likely to deter speculative developments, and its issues last year were one of the main reasons behind the recent drop in construction employment.

Read our H1 Ireland Market View for full economic insights into the first half of 2024.