DAVY VIEW

We have revised up our forecast for Irish GDP growth to 6.9% in 2023 and 5% in 2024. First, activity at end-2022 held up better than expected (especially in the multinational sector), driving 3.5% GDP growth in Q4. Second, lower energy prices have led us to revise down our forecast for Consumer Price Index (CPI) inflation to 4.7% on average, in 2023. Third, the global economic outlook now looks a little less challenging, with the euro area potentially avoiding a recession.