In contrast to a previous estimate of 3%, it stated that adjusted domestic demand will grow by 4%.

The Gross Domestic Product (GDP), which includes multinational activity, is expected to expand by 4.3% and employment by 2.2%. According to the bank, 45,500 homes will be completed, which will raise investment spending.

In comparison, 30,000 dwellings were constructed in 2024.

The Bank of Ireland predicts that a 4.5% increase in consumer pay growth will support a 3% increase in consumer expenditure.

"The Irish economy had far more momentum in late 2024 than expected, recording an exceptional pace of job creation," stated Conall MacCoille, chief economist of the Bank of Ireland. He said that the Bank of Ireland has raised its GDP prediction since the exports sector had done well.

According to him, "Irish households should enjoy real income growth in 2025, aided by Budget 2025 tax cuts" because pay growth is currently outpacing inflation.

However, Mr. MacCoille cautioned that a collapse in international trade relations remained a risk to the forecast. He stated that "Far more radical tariff/tax proposals from the Trump administration would be required to harm the economy in 2025."