Cost Of Living Crisis

Michael McGrath: Ireland set for a ‘short and shallow downturn’ in the coming months

Finance minister believes that there should be an economy recovery within months but warned that ‘uncertainty is exceptionally high’

The Minister for Finance has said ‘uncertainty is exceptionally high’ for the economy. Picture: Bryan Meade.

Michael McGrath believes that the Irish economy will experience a “short and shallow downturn” in the coming months.

The finance minister said he “expects the domestic economy to effectively move sideways” before a modest recovery.

Addressing the Chartered Accountants Ireland annual dinner, McGrath said that as central banks have “brought the era of cheap money to a close” in response to inflationary pressures, the impact had been felt by mortgage holders, businesses and governments.

“Against ...