Government welcomes IMF's annual report on the economy

The Government has welcomed the publication of the IMF's annual review of the Irish economy, which sets out the current position of the Irish economy.

The report sets out the views of the IMF (International Monetary Fund) on the economy and identifies the key factors that have a bearing on domestic living standards in the coming years.

The report highlights how the economy in Ireland has remained strong in the face of external shocks, and this is down to strong policies and a well educated labour force. There are also signs of uncertainty and downside risks.

The annual review is called the Staff Report for the 2026 Article IV Consultation, and it is a long-standing element of Ireland’s engagement with the IMF. This year's review took place from 12 to 25 May.

Tánaiste Simon Harris commented on the Report saying: “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 Article IV 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 welcome the IMF’s acknowledgement of the progress Ireland is making in infrastructure and housing, and take on board their view of the need for further reform in planning and in relation to judicial reviews.

“On the fiscal front, I fully agree with the Fund on the need to invest in infrastructure and control the growth in current spending, while continuing to save for the future via the Future Ireland Fund.

“The Government’s fiscal strategy, published with the Medium-Term Fiscal and Structural Plan last December, will do just that. It will allow us to continue to invest in public services, boost our competitiveness and ensure our children are not burdened with higher taxes and lower standards of living as the country ages.”

Minister for Public Expenditure, National Development Plan Delivery and Reform, Jack Chambers added: “Today’s IMF report reflects the continued strength of the Irish economy, in the face of heightened global uncertainty, and rapid technological advancement.

“I share the IMF’s view that addressing structural issues is key to maintaining economic growth, and in particular, the need to address the challenges and bottlenecks present in infrastructure delivery. This is a key priority for me, and I welcome the IMF’s positive assessment of the actions undertaken by my Department and Government to date.

“My approach is focused on removing the barriers to infrastructure delivery, ensuring that capital investment over the coming years translates into the timely and effective completion of projects, which will support housing delivery alongside maintaining and strengthening the competitiveness of our economy.

“This year’s IMF Appraisal puts a spotlight on the potential impacts of ongoing technological developments for our economy, particularly in relation to AI. In recognition of opportunities, I am leading on government-wide initiatives to enhance the adoption of digitalisation and AI within the public sector. Last year, I published the Digital Public Services Plan alongside Guidelines for the Responsible Use of AI in the Public Service. These plans will support the delivery of improved and modern public services for our people.”