Ireland’s economy exposed as global outlook tightens – Central Bank

CBI warns high levels of inflation eroding consumer spending power and business profit margins

Gabriel Makhlouf, the Governor of the Central Bank of Ireland, said the most visible and direct economic effects in countries such as Ireland have been the increase in commodity prices, with implications for consumers through the cost of energy. Picture: Patrick Browne

Ireland is more exposed to a souring global economic outlook rooted in Russia’s invasion of Ukraine, supply chain difficulties and rising prices, the Central Bank of Ireland has warned.

In its financial stability review, the Bank said the Irish economy was still expected to grow this year but noted that as a small, open economy Ireland was more vulnerable to global financial conditions which had “tightened considerably” over the last six months.

Gabriel Makhlouf, the ...