Bank of Ireland eyes economic growth of 3.5% for 2026
The Bank of Ireland has released revised economic forecasts, predicting 3.5% growth for 2026 while noting a decline in GDP due to shifting pharmaceutical exports. The report highlights a robust construction sector and significant foreign investment in AI-related data centers and semiconductor manufacturing.
Why it matters
The data provides insight into Ireland's economic trajectory, specifically the impact of multinational tech and pharmaceutical investments on national growth.
Bank of Ireland has forecast that the domestic economy will expand by 3.5% this year and 2.5% in 2027.
It also expects just under 40,000 homes will be built this year up from 36,000 completed last year.
The bank says the measure of the economy which includes the multinational activity, Gross Domestic Product, will fall by 3% this year as the surge in pharmaceutical exports which was experienced in 2025 unwinds.
It has revised downwards its forecast for inflation for this year as oil prices trade at around $90 per barrel down from their peak of almost $118 after the Iran war broke out. Bank of Ireland says the phased withdrawal of Government supports means inflation will be 3.1% this year and 2.7% next year.
The bank also says job creation is flattening off and employment is forecast to grow 1.1% this year and 1.5% in 2027.
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