Dublin Economic Monitor

Overall retail sales growth in Dublin as well as across Ireland decelerated in Q1 2024 versus Q1 2023. In Dublin, the Entertainment sector had been seeing large growth rates recovering from the pandemic dating back to Q2 2021. The growth rates in the sector are normalising as we move away from the deep declines experienced during the pandemic. Tourism related spending remains strong with growth in Dublin and across Ireland.

The Dublin private sector started 2024 on the front foot as renewed growth of new orders supported faster rises in output and employment. The dominant service sector was the main source of expansion. Increases are hopefully set to become more broad based as the year progresses. The positive performance in Dublin was consistent with the picture for the Rest of Ireland which also began the year in expansion mode, although the capital saw faster growth rates across the three indicators covered.

Getting a clear read on the economy is proving elusive at the moment. This edition of the monitor reflects this challenge, noting a mixed picture across different indicators. We have new peaks for hotel occupancy and a faltering demand for restaurants, reasonable retail performance but weakening business activity and we continue to see strong employment statistics but fewer vacancies. All things considered, the domestic economy has recorded growth, and is expected to continue doing so, but weak external demand is dampening the pace of expected growth.