October 3, 2023 at 7:01 PM EDT

Ireland’s gross domestic product is set to contract this year, but its domestic economy is expected to grow, according to the Economic and Social Research Institute.

GDP will contract by 1.6%, influenced by international factors including rising inflation and high interest rates, the institute said. That would be the first year the economy fails to expand since 2012, according to the institute.

Up Next

Irish GDP to Contract, But Domestic Economy to Grow, ESRI Says