Modified domestic demand, which is a more suitable benchmark for economic growth in the Irish economy than GDP, is set to grow by 2.5 % next year and 2% in 2026. That’s according to the Central bank of Ireland quarterly economic bulletin which also predicts that inflation will hit the sweet spot of around 2%, over the next two years. But it warns that the pace of excessive spending risks a crisis and that housing and other infrastructure issues need to be sorted.

To discuss further Joe was joined on the show by  Robert Kelly the Director of Economics and Statistics with the Central Bank of Ireland.