A stronger than expected recovery is forecast to result in activity in the domestic economy returning to pre-pandemic levels this year, according to the Central Bank.
In its Quarterly Bulletin, published today, the Central Bank also warns that in the short-term surging demand and bottlenecks in the supply of some goods will lead to higher inflation but this will not last.
It comes as the economy is rebounding faster than many had predicted. This will see domestic demand grow by 5.5% this year and just over 7% next year.
The Central Bank expects 160,000 jobs to be created during the recovery and for unemployment to fall to 5.9% on average in 2023.