The Irish economy has stabilized in the second half of last year and is set to grow at a faster pace in 2013, marking the third successive year of reasonably solid growth, the Irish Business and Employers Confederation (IBEC) said Monday.
The IBEC, in its latest quarterly outlook, said that 2013 would mark a turning point for the Irish economy, with GDP growing 1.8 percent on the back of strong domestic demand and exports. The recovery is expected to gain further momentum in 2014.
"Although many Irish households continue to grapple with debt and unemployment, there is growing evidence that 2013 could be a turning point for the domestic economy," IBEC Chief Economist Fergal O'Brien said.
The estimated growth for this year represents an improvement from the 1.2 percent expansion projected for last year, which was supported by another record performance by the export sector. Ireland is the second fastest growing Eurozone economy in 2012.
Driving the recovery, private sector employment improved significantly in the third quarter of last year, and retail sales finished the year on a positive note. At the same time, the housing sector has seen prices stabilizing and housing transactions and new mortgage activity increasing, IBEC said.
The employers' group predicted that Ireland is set to record an annual inflation rate of 1.5 percent this year, which will move up to less than 2 percent in 2014.
At the same time, unemployment is forecast to stabilize and to remain high for some time, while private sector employment will start recovering with a modest growth of 0.4 percent in 2013.
"Exports continue to perform strongly, despite difficult trading conditions. Importantly, we're seeing more businesses successfully making the transition from domestic sales to exports, and progress continues in developing new markets," O'Brien added.
news.instaforex.com
2013-1-21 15:42