In recent decades, Ireland made impressive strides in developing its economy and raising living standards. This progress has allowed the economy to weather the COVID-19 pandemic and cope effectively with the repercussions from Russia’s war of aggression against Ukraine. The economy has recovered, but inflationary pressures emerged and while the outlook is favourable, risks are tilted to the downside. The financial sector appears to have withstood the recent shocks, but faces some structural problems, including high legacy mortgage arrears. Fiscal policy had enough room to react to the crises forcefully and shield households and businesses from the full weight of the shocks. A number of pressures will affect fiscal policy in the short run and its sustainability over a longer horizon, including ageing, ensuring adequate supply of affordable housing, and combatting climate change. Labour force participation is still weak for those with lower education attainment and rising house prices are creating affordability concerns. The government has launched an ambitious Housing for All initiative to boost residential accommodation, which will require action to enable a stronger supply response. Ireland did not meet its 2020 emission reduction target. A major plank of abatement policy is the establishment of carbon budgets and sectoral emissions ceilings. The agriculture sector presents particular difficulties for abatement.