Ministers Donohoe and Chambers welcome IMF assessment of Irish economy

Ireland - The Minister for Finance, Paschal Donohoe TD, and the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers TD, today welcomed the publication of the IMF’s annual review of the Irish economy, the Staff Report for the 2025 Article IV Consultation.

Ireland’s 2025 Article IV Consultation was set against the backdrop of Budget 2025 which

was framed in the context of a continued need to improve public services and accelerate infrastructure to support a growing population and the competitiveness of our economy.

The Report sets out the views of the IMF on the current position of the Irish economy and identifies key structural factors that will have a bearing on domestic living standards in the years ahead. It notes that Ireland has achieved impressive results by building on its comparative advantages and enacting sound policies, with growth projected to remain solid and inflation close to target, though with the outlook subject to uncertainty and significant downside risks. Commenting on the Report, Minister Donohoe said:

“I welcome today’s publication by the IMF, and its assessment that our economy and the impressive results we have achieved by building on our comparative advantages. This annual report by the IMF is a very useful economic stock-take and helps shed light on our relative strengths and weaknesses.

I note and share the IMF’s assessment of external risks, notably the reversal of globalisation, the ongoing disruption caused by regional conflicts, domestic capacity constraints, and the uncertainty in relation to corporation tax receipts. While I acknowledge Ireland’s vulnerability to the rise in global uncertainty, our economy has demonstrated resilience in the face of consecutive large shocks.

I acknowledge the IMF’s recommendation of a broadly neutral fiscal stance for the upcoming budget and five-year fiscal plan.

Following the formation of the new Government in January this year, the Programme for Government committed to delivering a clear and credible macroeconomic and fiscal framework and one that would prioritise continued economic resilience through investment in capital spending and funds for future needs.

I welcome the IMF’s strong support for the two savings funds which the Government has established. By the end of this year, I expect a total of €16 billion to be saved in the funds.”

Minister Chambers said:

“I welcome the IMF report which presents a timely opportunity to consider ongoing developments in our economy.

I agree with the IMF in relation to the importance of strengthening public investment efficiency and ensuring timely execution of the capital budget for the delivery of the National Development Plan. This is a key priority for me and for Government.

I share the IMF’s assessment of key structural issues – in particular the need to further increase housing supply. Work is underway to update the National Development Plan, the key goal of which is to support the delivery of housing. My approach is two-fold – firstly, to allocate resources more strategically to enable the delivery of 300,000 new houses and secondly, to proactively remove the bottlenecks and barriers to infrastructure delivery in our country in support of programme for government commitments.

These priorities will be delivered in the context of Government’s Medium-Term Fiscal and Structural Plan. Working with Minister Donohoe and his Department, we will be setting out how the country will manage government spending, taxes and reform over the next five years. This work looks beyond quick wins, ensuring informed investment, stability and real progress. Delivering this plan will ensure that we can continue to build on our comparative advantage and protect the economy from external headwinds.”