Insights from the Sanderson 2026 Economic Outlook Breakfast Briefing

We were delighted to welcome a full room to our 2026 Economic Outlook Breakfast Briefing, with a lively and thoughtful discussion reflecting the level of interest in what lies ahead for the Irish and global economy.

Hosted in person by Sanderson, the briefing featured Kevin Timoney, Chief Economist at Davy, who delivered a data-rich and highly engaging outlook as we look towards 2026. Kevin’s analysis offered valuable context for business leaders navigating ongoing economic uncertainty, while highlighting the structural strengths underpinning Ireland’s performance.

The global economic backdrop: Kevin outlined a cautiously optimistic global picture. The world economy is forecast to grow by around 3% in 2026, supported by easing inflationary pressures and a more accommodative monetary stance. In the US, the Federal Reserve is expected to implement two interest rate cuts next year, helping to stabilise financial conditions.

However, policy uncertainty remains elevated across major economies, continuing to influence investment decisions and economic forecasts. This uncertainty reinforces the importance of scenario planning and flexibility for organisations operating in global markets.

Ireland’s favourable outlook continues: Against this backdrop, Ireland remains a standout performer. Per-capita economic growth averaged 2.9% between 2014 and 2024, underlining the resilience of the domestic economy. National income rose by 4.8% in 2024, exceeding expectations, while employment growth continues to be supported by strong and resilient consumer spending.

These trends point to sustained demand for skills and talent across a broad range of sectors as we move into 2026.

Population growth and structural change: Population trends were a key theme of the discussion. Both the Department of Finance and Davy expect continued population expansion, with Davy forecasting stronger near-term growth. Immigration is driving a structural increase in population, particularly among younger cohorts, which is reshaping labour market dynamics and intensifying demand for housing and infrastructure.

For employers, this has important implications for workforce planning, talent availability and long-term skills strategies.

Housing and infrastructure challenges: Housing remains a critical constraint. Supply continues to lag demand, contributing to ongoing price growth. Ireland’s housing stock per adult remains low relative to population needs, highlighting the scale of the challenge.

While a notable increase in construction activity is expected in Q4 2025, government targets remain ambitious, and housing availability will continue to influence labour mobility and recruitment outcomes.

Growing national wealth – and its distribution: Irish household wealth is rising faster than the euro-area average, with a projected 6.2% compound annual growth rate from 2025 to 2035. Net household wealth is expected to reach €2.5 trillion by 2035, although wealth concentration is increasing, particularly through housing assets.

This trend has wider implications for consumption patterns, savings behaviour and long-term economic resilience.

A huge thank you to Kevin Timoney for his clarity and insight, and to everyone who joined us for such an engaging and thoughtful discussion. The structural shifts highlighted — particularly in population growth, labour demand and housing — will continue to shape talent strategies and workforce planning through 2026 and beyond.

 

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