Ireland's economy demonstrated resilience during the COVID-19 pandemic and Russia's war of aggression against Ukraine. The government's COVID-19 measures contributed to the economy weathering many challenges successfully, enabling a strong recovery boosted by exports from the multinational sector and high vaccination rates. Fiscal performance improved, moving from a deficit of ‑1.6% of Gross Domestic Product (GDP) in 2021 to a surplus of 1.6% in 2022. Moreover, Ireland's public debt fell well below the OECD average, decreasing from 65.5% in 2021 to 46.7% in 2022.
However, as in many other OECD countries, these developments are accompanied by population ageing. It is predicted that the share of people aged 65 and older will increase from 15.1% in 2022 to 21.5% in 2040 and then to 27.5% in 2061. In contrast, the share of the population in early childhood education and care (ECEC) and most of compulsory education (0‑14 year‑olds) is predicted to decrease from 19.5% in 2022 to 15.3% in 2040, increase slightly to about 15.6% in 2050 and then drop again to 14.1% by 2061. With student numbers decreasing, there may be a shift in public resources towards pension schemes and healthcare. Related to the demographics are migration trends. The number of immigrants, standing at 141.6 thousand in April 2023, has been the highest since 2007. More than half (53%) were aged between 25 and 44 years. Furthermore, 18 266 Ukrainian students had been enrolled in schools across Ireland at the end of April 2024.
Moreover, housing and homelessness pose complex challenges in Ireland. The increase in housing prices in recent years has escalated affordability concerns, exacerbated by a housing stock that has struggled to keep pace with the rising number of households, particularly for lower-income families. Lack of affordable and social housing also impacts homelessness. Homelessness figures are at record levels, with almost 10 000 adults accessing local authority funded emergency accommodation in 2023. The number of dependants (children) accessing local authority managed emergency accommodation also rose from 3 422 in 2019 to 3 962 in 2023.