DAVY VIEW

The latest exchequer returns for March and card payments data for February align with our view that the Irish economy began 2026 in good shape. We think an inflation boost to tax receipts is likely from Q2 onwards and that real Irish economic growth can continue despite higher inflation and global economic uncertainty. This is helped by supportive Government policies for housing and infrastructure, along with the strength of Ireland’s financial balance sheet. We think this significantly underpins the resilience of Ireland’s real economic growth this decade.