Economy to grow at moderate pace despite record employment [Video]

A moderate pace of growth is expected for the Irish economy for the rest of the year according to AIB’s latest economic forecast.

The bank looked at modified domestic demand (MDD) which it said was “a less volatile gauge of domestic activity than Gross Domestic Product (GDP)”.

After years of rapid growth, MDD is expected to grow by just 2.3% in 2024.

According to AIB’s Economic Outlook for October, the domestic economy will be buoyed by further employment growth and a renewed rise in real wages as inflation normalises. 

The slow down in growth is expected as as the economy and labour market reach full capacity. 

The bank says MDD is expected to grow by 2.8% next year and 2.7% in 2026.

The report also noted inflation “has returned to its normal range and is expected to remain there for the near term”.

The report suggests the annual harmonised index (HICP) of consumer prices is expected to fall to 1.9% …