Ireland’s economy weathered the COVID-19 pandemic well, emerging with solid GDP growth and a strong fiscal position. Yet rising inflation and global economic uncertainty over Russia’s war of aggression against Ukraine will dent the pace of the recovery.

The Survey recommends accompanying investments to boost housing supply and speed up the low-carbon transition with reforms to reduce regulatory and legal hurdles, as a way to reduce uncertainty and transaction costs in both areas. It welcomes a decision to place EUR 6 billion of 2022-23 windfall tax receipts in the National Reserve Fund and suggests this policy could be continued. The country’s new spending rule, limiting permanent spending increases to 5% per year, will improve resilience to future shocks, and Ireland could consider strengthening the rule by giving it legislative status.