Ireland braces for energy crisis economic impact.

Ireland braces for energy crisis economic impact. The government unveiled a modest €250m support package this week, cutting fuel taxes and providing €150 benefits to 470,000 vulnerable households. While this pales compared to the €12bn in supports during the previous energy crisis, officials remain cautious about escalating measures. Ireland's Central Bank forecasts economic growth could slow to below 3% with inflation rising to nearly 3% in a baseline scenario, or deteriorate further if conflict persists. The country enters this crisis from relative strength, buoyed by tech and pharma tax revenues that enabled budget surpluses. However, economists warn significant risks remain, including potential construction inflation that could worsen Ireland's chronic housing shortage. Growth of nearly 5% in 2025 is unlikely to continue.