Irish economy

Q2 homebuilding up 35%; NDP provides a roadmap to recovery

DAVY VIEW

New housing data showed a welcome and much-needed boost to output, up 35% on Q2 last year. While a doubling of apartments from a low base helped, house completions were also strong and support the case for our 2025 above-consensus forecast of 37.5k new homes. Earlier this week, the Government committed to a significant increase in public capital spending with the National Development Plan (NDP) Review. The plan charts a roadmap to recovery for Ireland’s housing and infrastructure deficits. However, this will take well over a decade if the economy again outperforms official forecasts, which assume a sharp slowdown in economic growth. Lastly, the Summer Economic Statement (SES) outlined plans for a less expansionary Budget 2026. Another large Budget surplus this year will put pressure on the Government to repeat the rapid increases in current spending seen in recent years.

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Jul 25 2025, 08:02 IST/BST

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