‘For the first time in two years, Irish households will see an increase in real wages’

Irish workers should see their income rise this year and next due to falling inflation

The ESRI says that inflation is set to drop to 2.3%, and will further decrease to 1.9% in 2025.

Kieran McQuinn, author of the report, said that "for the first time in two years, Irish households will see an increase in real wages in both 2024 and 2025.

"This will support increased consumption levels in the domestic economy."

Ireland's domestic economy performance is measured by Modified Domestic Demand (MDD), which filters out multinational companies and their effect on the economy.

MDD is set to increase by 2.9% next year.

The ESRI have also reported that the labour market is strong and at full capacity. The institute expects the unemployment average to be 4% next year.

However, according to the research, housing supply must move at a faster pace to meet the extreme demand for housing.

They estimated that 33,000 houses will be completed this year, which is a similar figure to 2023.

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