Irish economy performing well in the Eurozone

Irish economy performing well in the Eurozone

IN THE final three months of 2022 The Irish economy grew by a better-than-expected 12.2 per cent last year despite a severe cost-of-living squeeze and a significant slowdown in the global economy, according to data from Eurostat.

This made Ireland the fastest growing economy in the Eurozone once again, exceeding Irish government forecasts.

The figures for Ireland were in stark contrast to two of the Eurozone’s largest economies as Germany and Italy, which both recorded negative growth for the quarter.

France and Spain expanded, Eurostat added

But there is one codicil, according to Reuters news agency. GDP growth figures for Ireland are skewed by the outsized role that multinational firms play in the economy. This is particularly true in the high tech and in the pharmaceutical sector. The latter in particular has continued to trade strongly despite the deteriorating international outlook.

The war in Ukraine, which has pushed up energy prices, has held back investment according to Reuters, and European Central Bank has increased rates in an effort to arrest inflation.