It is also expecting 160,000 jobs to be created by 2023
The Central Bank is expecting the domestic economy to grow by over 5 per cent this year - more than previously thought.
It's also revised upwards its projections for GDP growth - which includes multinationals - to over 15 per cent.
The unemployment rate is forecast to fall to around 7 per cent next year - with wage growth of around 5 per cent.
Mark Cassidy from the Central Bank says wages will rise in some sectors more than others:
The Central Bank has published the fourth Quarterly Bulletin of 2021, forecasting that a rebound in the Irish economy is expected to be followed by a sustained period of robust growth. Read more here: https://t.co/PIMzIPMwsO pic.twitter.com/muFEUaLQsw— Central Bank of Ireland (@centralbank_ie) October 6, 2021
The Central Bank is expecting 160,000 jobs to be created by 2023 as the economy recovers from the pandemic.
Domestic activity is due to reach pre-pandemic levels by the end of the year with growth of over 5 per cent - excluding multinationals.
The unemployment rate is forecast to fall to around 7 per cent in 2022 although some sectors will take longer to recover than others.
Mark Cassidy says they expect a steady drop in the number of people out of work over the coming years:
The Quarterly Bulletin also forecasts the unemployment rate to increase to 7.3% this year declining to 7.2% in 2022 pic.twitter.com/uhESgyki8h— Central Bank of Ireland (@centralbank_ie) October 6, 2021