Economy

Infrastructural bottlenecks and global uncertainty choking economic growth – Central Bank

CBI quarterly bulletin forecasts growth of 2.2 per cent in modified domestic demand this year, down from 3.1 per cent in 2023

Despite the fall in headline inflation, the CBI said that services inflation remained above 5 per cent, with merely gradual decline forecast by 2026. Picture: Fergal Phillips

The pace of growth of the Irish economy has been curtailed by “global headwinds and domestic capacity restraints”, according to a new report from the Central Bank of Ireland (CBI).

In its latest quarterly bulletin, the regulator said that although projections indicated modest growth and lower headline inflation, risks posed by geopolitical tensions, increased labour costs and capacity constraints could deviate this trend.

The report for the first quarter of 2024 indicated that headline inflation ...