Dublin Economic Monitor

The first quarter experienced an impressive rebound in year-over-year growth across retail sales driven by the recovery of sales in the discretionary and entertainment sectors. As Covid restrictions are eased compared to 2021 the most impacted sectors are roaring back to life. Tourism spending is also staging a comeback with growth from tourists coming in from across Europe including Germany, France and the UK. Growth rates have to be taken in context with the depressed spending levels from a year ago, however they are a strong sign of the pent-up demand for Dublin and Ireland as a destination.

The fading of the Omicron wave of the COVID-19 pandemic helped to boost growth in Dublin in the opening quarter of 2022, with the capital outpacing the Rest of Ireland. Reduced concerns around the pandemic were especially good news for workers, as firms in Dublin took on additional staff at the fastest pace in three-and-a-half years.

A stronger economic outlook for 2022 reflected optimistic businesses and consumers as pandemic restrictions eased more fully. Potential constraints to growth such as labour shortages, inflation and the Russian invasion of Ukraine, are building and may prompt a rethink.