Video transcript
Ireland’s economic performance and standard of living have made impressive progress.
However, to maintain robust growth, Ireland should now focus on modernising its infrastructure, ensuring enough affordable housing and combating climate change.
Real GDP growth is projected at 3.7% in 2025.
Fiscal prudence is required in the face of spending pressures from ageing, climate change and housing investment.
Reducing skills shortages, lowering legal costs and further easing administrative burdens on businesses would boost productivity.
The recent increases in female employment are welcome, but more is needed. Making childcare subsidies more means-tested would improve equal access.
To improve the business environment:
- Make public financial support for childcare more means-tested and continue to expand childcare capacity.
- Closely monitor the combined cost impact of reforms to improve working conditions on sectoral business sustainability.
- Enhance competition in legal services.
Policies to increase housing density, and boost productivity and lower costs in the construction sector are needed to increase housing supply.
Ensuring adequate supply and funding for social housing would improve living conditions for the most vulnerable.
To improve housing affordability:
- Better align local targets with local conditions.
- Reform the funding of social housing by diversifying sources of finance.
- Streamline social housing allocation processes and prioritise people experiencing homelessness more.
Achieving climate neutrality by 2050 will require substantial reforms and investment.
Speedier implementation of plans and pricing emissions more uniformly across sectors are key.
To achieve climate targets:
- Further align carbon prices across sectors in line with their environmental impacts.
- Shift from planning to faster implementation in terms of climate plans with a focus on delivery of concrete actions.
- Expedite permitting and grid connection processes.
To learn more, read our Economic Survey of Ireland 2025.