NESC Report - Building A Virtuous Demographic Cycle

The Government today welcomed the publication of a new report, Building A Virtuous Demographic Cycle, from the National Economic and Social Council

The report identifies significant demographic shifts underway in Irish society, including a growing and ageing population and patterns of depopulation in some areas but overdevelopment in other regions.

The Future Forty work by the Department of Finance highlights the need for Ireland to prepare for these changes. Sustaining social cohesion, economic resilience, and fiscal sustainability requires coordinated policy action across multiple domains.

The Council sets out a virtuous cycle in which demographic growth is an opportunity and argues that investment in infrastructure and services should align with higher population projections.

In the virtuous cycle, policies align with higher population projections, signalling confidence and building capacity to meet future needs.

The population age structure is stabilised to some extent, participation in the workforce increases, fiscal pressures are eased and potential for investment increased.

This eases infrastructure pressures, improves the quality of life, and strengthens integration and retention of citizens.

The other levers span a range of Government policy areas including, fiscal preparedness, strategic family supports, work and participation, health care and, healthy ageing and balanced regional development.

The report describes a future path for Ireland, putting forward an argument for the positive potential of sustainable population growth.

Speaking on the publication of the report the Taoiseach said:

“I welcome the publication of this Council report. Ireland’s economy and population have both grown significantly across a generation, and this report examines the long-term impacts of global trends and other shifts in the make-up of Irish society and their potential impact on Ireland’s economy and public finances in the years ahead.

The Council’s report is very useful in highlighting the need and potential of shaping future demographic trends to the country’s advantage.”

Dr Larry O’Connell, Director of NESC, added that:

“Ageing, falling fertility, and shifting migration patterns are reshaping societies across Europe, and Ireland is no exception. While Ireland has undergone remarkable change in recent decades, it would be unrealistic to assume this pace can continue indefinitely. Demographic trends will shape living standards, labour markets and the sustainability of public finances for many years to come, and a rapidly ageing population will place growing pressure on our care systems.

Long-term planning is therefore essential as we confront these profound shifts. With a positive and ambitious approach, Ireland can ensure that demographic change becomes a springboard for a more cohesive and inclusive society.”

Dr Gráinne Collins, Policy Analyst at NESC, said:

“Demographic change is inevitable, but it does not have to be destabilising. It is a signal to plan ahead to create the country we want to live in. By acting now, we ensure that future generations inherit a social model that is resilient, sustainable, and genuinely inclusive.”

The full report can be read here