Economic news

Irish central bank sees lower economic growth, higher inflation next year

2022.10.04 20:13



© Reuters. FILE PHOTO: A shopper wearing a face masks pushes a trolley in a discount shop, as the spread of the coronavirus disease (COVID-19) continues in Dublin, Ireland, November 30, 2021. REUTERS/Clodagh Kilcoyne

DUBLIN (Reuters) – Ireland’s central bank pushed up its 2023 inflation projections and revised down its forecast for economic growth for the third quarter in row, but expects the drag on disposable incomes to ease in the second half of next year.

The bank still sees modified domestic demand (MDD), its preferred economic growth measure, expanding by 2.3% next year and also revised up its forecast for this year to 6.4% due to a large, likely one-off increase in investment in the first half.

However, it had forecast MDD growth of 4.2% for 2023 three months ago, before a more prolonged period of price pressure from increased energy costs forced it to push up its inflation forecast for next year to 6.3% versus 4.2% previously.

With inflation currently estimated at 8.6%, the bank also nudged up its forecast for 2022 to 8% from 7.8% and said there remain upside risks to the inflation outlook and downside risk to the growth forecast.

“These developments will dampen the expected pace of economic growth over this winter and into next year as households and firms delay less-essential spending and investments in light of uncertainty and more constrained real incomes,” the central bank said in its quarterly bulletin.

Its inflation forecasts were lower than those published by Ireland’s finance ministry last week. The finance ministry was also more pessimistic on the outlook for the economy, predicting MDD growth of just 1.2% next year.

The central bank said the impact of the energy crisis would likely cut average real household incomes by 3.3% this year, the largest reduction in just over a decade.

A more pronounced pickup in wages – forecast to rise by 5.8% in 2023 – is expected to begin to mitigate the impact somewhat in the second half of next year, it added.

On the recent economic turmoil in neighbouring Britain, the central bank said a less favourable growth path there would have only slightly negative implications for Ireland’s outlook while a larger appreciation of the euro vis-a-vis sterling would lead to weaker inflation, given the level of imports from Britain.



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,394.36 0.24%
ethereum
Ethereum (ETH) $ 3,424.12 2.19%
tether
Tether (USDT) $ 1.00 0.02%
solana
Solana (SOL) $ 256.95 1.63%
bnb
BNB (BNB) $ 664.65 2.59%
xrp
XRP (XRP) $ 1.47 4.07%
dogecoin
Dogecoin (DOGE) $ 0.438068 4.46%
usd-coin
USDC (USDC) $ 1.00 0.02%
cardano
Cardano (ADA) $ 1.07 1.43%
staked-ether
Lido Staked Ether (STETH) $ 3,423.22 2.24%
tron
TRON (TRX) $ 0.215288 3.49%
stellar
Stellar (XLM) $ 0.588336 38.51%
avalanche-2
Avalanche (AVAX) $ 42.68 3.26%
the-open-network
Toncoin (TON) $ 6.48 16.27%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 0.44%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,059.37 2.24%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,182.31 0.05%
polkadot
Polkadot (DOT) $ 9.16 22.74%
chainlink
Chainlink (LINK) $ 17.84 6.37%
bitcoin-cash
Bitcoin Cash (BCH) $ 514.31 4.37%
weth
WETH (WETH) $ 3,425.16 2.25%
sui
Sui (SUI) $ 3.46 3.38%
pepe
Pepe (PEPE) $ 0.000021 2.87%
leo-token
LEO Token (LEO) $ 8.66 1.02%
near
NEAR Protocol (NEAR) $ 6.49 4.36%
litecoin
Litecoin (LTC) $ 101.41 2.35%
aptos
Aptos (APT) $ 13.02 2.06%
uniswap
Uniswap (UNI) $ 11.04 8.06%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,609.08 2.35%
hedera-hashgraph
Hedera (HBAR) $ 0.150903 0.97%
internet-computer
Internet Computer (ICP) $ 11.78 7.97%
crypto-com-chain
Cronos (CRO) $ 0.199331 6.34%
usds
USDS (USDS) $ 1.00 0.41%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.584942 12.57%
ethereum-classic
Ethereum Classic (ETC) $ 30.22 3.65%
render-token
Render (RENDER) $ 7.97 2.63%
bittensor
Bittensor (TAO) $ 539.68 4.49%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.52 16.00%
kaspa
Kaspa (KAS) $ 0.154041 1.13%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.07%
arbitrum
Arbitrum (ARB) $ 0.888577 9.74%
bonk
Bonk (BONK) $ 0.000048 5.64%
cosmos
Cosmos Hub (ATOM) $ 9.17 19.20%
whitebit
WhiteBIT Coin (WBT) $ 24.74 0.48%
filecoin
Filecoin (FIL) $ 5.91 19.51%
vechain
VeChain (VET) $ 0.043319 7.76%
dai
Dai (DAI) $ 1.00 0.01%
mantra-dao
MANTRA (OM) $ 3.73 2.27%
dogwifcoin
dogwifhat (WIF) $ 3.34 0.29%
okb
OKB (OKB) $ 54.74 10.55%