Irish economy to grow, inflation to fall next year - IMF

​The International Monetary Fund has said growth in the Irish economy is expected to "remain strong".

But it warned that risks are "tilted to the downside" as there is "substantial uncertainty" due to the fall-out from the ongoing war in Ukraine.

The IMF forecasts growth in GDP (Gross Domestic Product) terms of 6% this year and 5% next year. It expects inflation to average 6.5% this year before falling to 2.8% next year.

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Officials from the IMF have been in Ireland for the past ten days as part of its annual 'Article IV Mission,' which is a kind of health-check on the economy.

The IMF is also recommending that the cap on bankers' pay and bonuses be removed.  In a statement to coincide with the conclusion of its mission, the IMF says several pre-pandemic challenges in the economy remain, including an "insufficient supply of housing".

It also highlights gaps which it says exist in investments in social services.  It says the Government has some room for further investment in certain social services, infrastructure and climate-related spending. However, it cautions that these must deliver value for money.

It also says that any spending to offset the recent surge in inflation should be directed as much as possible to vulnerable groups rather than being broadly based.

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