An advisory body has warned that Ireland’s population is at risk of a “vicious downward cycle” due to the cascading effects of a declining birth rate and the Government must act to reverse it.

The statement is contained in a report by the National Economic and Social Council (NESC), which researched recent demographic shifts across the country. Ireland’s fertility rate is currently at 1.5, well below the replacement level of 2.1 children per woman.

While lower population growth and migration may be tempting, the report said, this could create a “vicious cycle”.

“The effect of this is that fertility declines further, emigration rises, and the population continues to age,” the report said.

“Fiscal and pension pressures mount, constraining future investment and creating a downward spiral of stagnation, as well as intergenerational and regional unfairness. Once established, such dynamics can be very difficult to reverse.”

Instead, the NESC recommended planning for a “virtuous cycle” which sees demographic growth “as an opportunity and invests accordingly”.

This will require far greater investment in services.

“Fertility may be stabilised through stronger family supports: affordable childcare and housing, adequate parental leave, and income and welfare policies that de-risk family formation,” it said.