Underlying domestic demand, a measure that gives a more accurate picture of economic activity, is forecast at 4.1 per cent this year, moderating to 3.3 per cent in 2020.5 We expect further growth in employment in 2019 and 2020, of the order of 2.2 per cent this year and 1.7 per cent next year.
Given our forecasts for labour force growth, this implies that the unemployment rate will drop to 4.9 per cent this year and 4.7 per cent next year.6 So, our central forecasts indicate that the current economic prospects for the Irish economy are quite robust. Risks from inside and out Risks however are prevalent from both inside and out.