Economic growth forecast for island of Ireland despite fuel supply turbulence
The EY Economic Eye forecast expects economic growth to continue across the island of Ireland this year, albeit at a slower pace due to a fuel crisis triggered by the war in Iran. Ireland's inflation rate is forecast at 3.1 per cent and Northern Ireland's at 0.7 per cent for 2026.
The EY Economic Eye forecast analysed the economies in Ireland and Northern Ireland amid turbulence prompted by the attack from US President Donald Trump's administration and Israel on Iran. Economic growth is expected to continue across the island of Ireland this year but at a slower pace because of a fuel crisis triggered by the war in Iran. EY is forecasting Ireland's inflation rate at 3.1 per cent and Northern Ireland's at 0.7 per cent for 2026. The conflict in the Middle East and the shutdown of the Strait of Hormuz have 'adversely affected' Ireland's inflation outlook. Irish GDP is expected to grow 1.8 per cent in 2026 and 4.2 per cent in 2027. The Northern Ireland economy is also forecast to grow this year and next, at a slower rate than south of the border.
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