The Central Bank has lowered its forecast for how many houses are likely to be built next year
In its new quarterly bulletin on the state of the economy, the Central Bank said it forecasts housing completions will hit approximately 32,500 this year, 37,500 next year, and 41,500 in 2027.
It's a decrease on the numbers contained in its last forecast in March, when it said it expected housing completions of 35,000, 40,000 and 44,000 in the three years.
The reason for the downward revision is that housing completions came in below expectation for the first three months of 2025, while commencements of new housing also dropped sharply.
The bank cautioned that the housing projections are subject to 'considerable downside risk' because of current bottlenecks in housing supply and infrastructure.
It added that increasing productivity in the construction sector will be essential to enable it to fulfil the increasing demand for housing, as well as associated water, energy, transport, communications and infrastructure.
The bank's report also paints a picture of how the Irish economy is faring.
Domestic economic activity was broadly steady for the first three months of the year.
Advertisement
Economic activity grew by 1% in the first quarter 2025 compared to the same quarter in 2024. Employment grew by 3.3% and unemployment stayed low at 4.3%.
There was a sharp rise in pharmaceutical exports to the US that drove an increase in headline GDP.
Merchandise exports surged in the first three months of 2025, up 64% year-on-year, which was 'entirely driven' by exports to the US.
Trading partners in the US and Ireland may have been trying to squeeze in as much business as possible before the tariffs threatened by US President Donald Trump could hinder their operations.
The Central Bank's director of economics and statistics Robert Kelly said that 'with the global economic backdrop continuing to shift, there is heightened uncertainty on the outlook for the Irish economy'.
'As a small, open economy with significant trading and investment relationships with the US and EU, Ireland is experiencing the fallout from changing geoeconomic relationships and priorities,' Kelly said.
He said that 'policy uncertainty, in particular related to significant shifts in US trade policy, has directly shaped headline economic activity in Ireland so far in 2025″.
'The exceptionally strong exports and GDP outturn in the first quarter in part reflected the response of multinational enterprises (MNEs) to the prospects for the imposition of tariffs or other measures later in the year,' he said.
'Despite this front-loading of activity, which was most notable in the pharmaceuticals sector, longer-term market expectations for the profitability of MNEs across pharma, med-tech and ICT manufacturing operating in Ireland are more negative than previously in light of the shifting US policy stance.'
Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article.
Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.
Learn More
Support The Journal
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Independent
32 minutes ago
- Irish Independent
From Dundalk to Texas: supply-chain tech firm Overhaul lands €90m in new funding round
The company, co-founded in 2016 by Palmerstown-born CEO Barry Conlon and Dundalk-based David Broe, has an Irish office in Dundalk with 40 people employed there but is now headquartered in Austin, Texas. With customers such as Microsoft, Acer, Bristol-Myers Squibb and others in tech and healthcare, the firm offers risk monitoring, real-time visibility and compliance tracking for shipments and logistics. When something happens that shouldn't happen... we're on top of it Some of their services have helped track and recover stolen cargo. Earlier this year, the company claimed to have helped recover $1.6m in stolen electronics in Texas by supplying location data and photos to investigating police. 'When something happens that shouldn't happen, like when a door is opened where it shouldn't be opened, or [a truck driver is] going in the wrong direction... we're immediately on top of it,' Mr Conlon previously told the Wall Street Journal. Overhaul has raised $215m to date. The company employs over 600 people globally and has recently acquired Michigan-based FreightVerify, which has over 60 staff and counts major car manufacturers as its clients. 'Our engineering and development efforts are focused on solving real-world problems, and this investment helps us accelerate that mission,' said Mr Conlon. 'The truth is that visibility is a data stream, not a standalone solution or app, and how we harness that stream is what truly sets us apart.' The news was also welcomed by industry group Endeavor Ireland, which counts Mr Conlon and Mr Broe as members. Barry and Dave have committed fully to our 'pay it forward' ethos 'This double milestone is a powerful example of how Irish founders are among the world's most talented, building industry-leading, globally competitive companies,' said U2 guitarist The Edge (real name David Evans) who is chair of Endeavor Ireland. 'Working with some of the world's biggest brands, Barry and Dave are solving complex logistical challenges while scaling in multiple countries and remaining a local employer here at home. 'Since becoming Endeavor entrepreneurs just last year, Overhaul has experienced strong growth – and Barry and Dave have committed fully to our 'pay it forward' ethos.'
Irish Independent
an hour ago
- Irish Independent
From Dundalk to Texas: supply chain tech firm Overhaul lands €90m funding round
The company, co-founded in 2016 by Palmerstown-born CEO Barry Conlon and Dundalk-based David Broe, has an Irish office in Dundalk with 40 people employed there but is now headquartered in Austin, Texas. With customers such as Microsoft, Acer, Bristol-Myers Squibb and others in tech and healthcare, the firm offers risk monitoring, real-time visibility and compliance tracking for shipments and logistics. Part of this is helping track and recover stolen cargo. Earlier this year, the company claimed to have helped recover $1.6m in stolen electronics in Texas by supplying timely location data and photos to investigating police. 'When something happens that shouldn't happen, like a door is opened where it shouldn't be opened, or [a truck driver is] going in the wrong direction…we're immediately on top of it,' Conlon previously told the Wall Street Journal. Overhaul has raised $215m (€184m) to date. The company employs over 600 people globally and has recently acquired Michigan-based FreightVerify, which has over 60 staff and counts major car manufacturers as its clients. 'Our engineering and development efforts are focused on solving real-world problems, and this investment helps us accelerate that mission,' said Barry Conlon. 'The truth is that visibility is a data stream, not a standalone solution or app, and how we harness that stream is what truly sets us apart.' The news was also welcomed by industry group Endeavour Ireland, which counts Conlon and Broe as members. 'This double milestone is a powerful example of how Irish founders are among the world's most talented, building industry-leading, globally competitive companies,' said U2 guitarist The Edge, who is chair of Endeavour Ireland. 'Working with some of the world's biggest brands, Barry and Dave are solving complex logistical challenges while scaling in multiple countries and remaining a local employer here at home. Since becoming Endeavor Entrepreneurs just last year, Overhaul has experienced strong growth and Barry and Dave have committed fully to our pay it forward ethos.'
The Irish Sun
an hour ago
- The Irish Sun
Alcohol harm costs Irish economy staggering €14bn a year amid calls for drastic action
The cost of alcohol on an economy can be estimated as equivalent to 1.5 to 2.6 per cent of GDP BOOZE costs the Irish economy €14billion a year, advocacy group Alcohol Action Ireland have claimed. The body that aims to reduce alcohol harm has used an international study to estimate how much alcohol costs the Irish economy across health, crime and employment. This study estimates that the cost of alcohol on an economy can be estimated as equivalent to 1.5 to 2.6 per cent of GDP – which would be around €14billion for Ireland. Alcohol Action Ireland released a new report that aims to highlight the impact of alcohol on workplace absenteeism and worker productivity. The report references a series of studies – some of which are more than a decade old – alongside international studies to examine the impact of booze on the workplace. CEO of Alcohol Action Ireland Dr Shelia Gilheaney claims that the lack of productivity caused by booze is hitting the Irish economy for €8.5billion. The group are using the 2021 international report to arrive at this figure as the study claims the cost of alcohol to an economy is broken down in 38.8 per cent direct costs (crime, health) and 61 per cent indirect costs such as workplace productivity, absenteeism and premature deaths. Dr Gilheaney said: 'Alcohol harm is estimated to cost the Irish exchequer about 2.5 per cent of GDP every year – that's €14 billion for 2024 – in health, justice and lost productivity. 'Of this, the lion's share – 61 per cent or about €8.5billion – is due to lost productivity. 'Given alcohol's huge drain on the Irish economy, much more could be done by government to address these issues.' Alcohol Action Ireland are urging the government to consider increasing excise duty on alcohol and bring in regulations for appropriate testing for alcohol to make workplaces safe. Dr Gilheaney said: 'It is clear that improved data collection and monitoring is necessary in relation to alcohol and the workplace, and alcohol's involvement in workplace accidents. I drank 7 bottles of vodka & 30 glasses of wine a week- I smashed teeth & was fired for being drunk, the booze broke me 'To this end, the government needs to introduce the relevant regulations regarding alcohol under the Safety, Health and Welfare at Work Act (2005), which ensures that, when necessary, there is appropriate testing for alcohol to ensure both safety and employee welfare, while also aiding organisational efficiency and productivity. 'Furthermore, it is important that the key stakeholders – government, employers' representatives, and the trade union movement – work together to ensure the adoption of the progressive approaches in dealing with alcohol the workplace in a manner which supports the employee and helps the workplace. 'The most cost effective way to reduce the burden of alcohol on the economy is for government to adopt policies that help reduce population-wide alcohol consumption, using the World Health Organisation's 'Best Buys' – controls on pricing, marketing and availability. 'This can be achieved by increases in excise duties on alcohol products, by fully implementing and enforcing the Public Health (Alcohol) Act, and by regulating the outlet density and opening hours of pubs and off-licences. 'If these simple measures were implemented there would no doubt be comparable improvements for workers, for employers, for society, and for the economy.'
