Irish economy likely to grow 3 pct every year until 2025: think tank

The Irish economy is expected to grow 3 percent every year until 2025, according to a leading think tank on Monday.

"The sustainable long-term real growth rate of the Irish economy is approximately 3 percent, driven mainly by growth in the trade sector," the Economic and Social Research Institute (ESRI) said in its latest economic outlook for Ireland.

The think tank said a key factor underpinning this growth is the continued expansion of the labor force, which is expected to increase by close to 2 percent per annum.

"This growth is supported by the natural increase in the working age population together with increases in female participation and a return to net immigration," it said.

It also said strong labor demand is expected to reduce the unemployment rate to just over 6 percent over the medium term.

According to the think tank, inflation is expected to remain relatively low at under 2 percent per annum.

The report mentioned diversion of investment from Britain to Ireland following Brexit, saying Ireland might benefit from a substantial relocation of foreign direct investment from Britain.

However, the size of this positive effect is dependent on the level of global demand, it said. Endit