The economic outlook for 2022 and the medium-term is largely positive – provided that the re-opening of labor-intensive sectors of the economy continues and that no further containment measures in the face of new Covid-19 variants are introduced.
In advance of Budget 2022, the Department of Finance has published revised macroeconomic and labor market forecasts for the period 2020 to 2025.
Real GDP is forecast to grow by 8.8 percent in 2021, before moderating to 5 percent in 2022. However, this reflects the growth from 2020’s exceptionally low base and the strong performance of those industries focused on international export markets, such as manufacturing. Meanwhile, Real MMD (Modified Domestic Demand) is forecast to grow by 2.6 percent in 2021, before rebounding more strongly in 2022. Continue here