Dublin Economic Monitor

Stability and fragility seem to be the common words being used to describe the economy at the moment. Inflation is hopefully moving off the stage as the main concern but the effects of the higher interest rate medicine are yet to work through fully. A strong labour market but nervy consumer leaves us casting around for certainty about where the economy goes next.

In Q2 2023, tourism spending continued to power retail sales results for both Dublin as well as across Ireland. Building on the large rebound in 2022, overall tourism spending in Q2 2023 was up 14% in Dublin and over 18% across Ireland. For the country overall, spending on entertainment was up considerably compared to Q2 2022. For the first half of the year, spending growth rates have been impressive and show the resilience of the Irish economy.

The midpoint of 2023 saw the economic trends amongst Dublin private sector firms soften somewhat. While still marked overall, upturns for activity and new orders eased from the previous quarter and employment growth was the least pronounced in over two years. In line with themes seen for the Rest of Ireland and indeed globally, manufacturers have found it increasingly difficult to generate new orders over the past year or so while service providers continued to benefit from the release of pent-up demand following the COVID-19 pandemic.