IMF Upgrades Ireland’s Growth Forecast, Praises Strong Economic Outlook
Washington: The International Monetary Fund (IMF) has upgraded its outlook for Ireland, describing the country as one of the world’s fastest-growing economies and commending its strong export-driven performance. The assessment was published in the IMF’s latest World Economic Outlook report.
According to the revised forecast, Ireland’s GDP is expected to grow by 9.1% in 2025, a significant jump from the 2.3% projection made in April. The IMF attributed this sharp improvement to robust exports in the pharmaceutical sector, which recorded a surge during the first quarter of the year.
The IMF noted that Ireland’s export strength also provided a notable boost to eurozone growth, contributing to an overall 1.2% expansion in the bloc. The report highlighted that much of Ireland’s export growth was driven by pharmaceutical shipments completed ahead of new U.S. tariffs, reflecting a wave of front-loaded trade activity.
Despite the upward revision for 2025, the IMF’s forecast remains slightly below the Department of Finance’s projection of 10.8% GDP growth included in the national budget.
Looking ahead, the IMF has downgraded Ireland’s 2026 growth outlook to 1.3%, compared with its previous forecast of 2.1% in April. Even so, the revised estimate remains above the Irish government’s own projection of 1% growth for that year.
The IMF expects inflation to average 1.7% in 2025, with a similar rate continuing into 2026. It also noted that the IMF expects employment levels here will remain strong, with unemployment forecast to remain low at 4.6% this year and next.
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