Ireland should see GDP growth of over 5% in 2005

Business World:

While there will be challenges to the Irish economy, including labour shortages and pensions shortfalls, GDP should still reach 5.5% this year, according to Friends First Quarterly Economic review.

Jim Power, Chief Economist at Friends First, said the Government must ensure that the Irish economy continues to develop and exploit its growth potential into the medium-term. He said the Government should examine a number of areas including a proper migration policy to attract skilled workers for a jobs market nearing saturation, while also bringing the pensions issue to the top of the policy agenda to ensure that the 'retiring poor' do not threaten Ireland's economic future.

He went on to say that the housing market continues to be buoyant, and is no closer to a sharp setback today than five years ago.

The labour market continues to perform very strongly and total employment should increase by at least 50,000 in 2005, equivalent to a growth rate of around 2.7%. The unemployment rate looks set to reach 4% later this year, the lowest in the Eurozone, the review said.

More good news about the Irish economy:

Irish GDP will grow at 6% this year and 6.5% over the following two years, AIB Global Treasury has forecast.

In its latest Quarterly Outlook on the Irish economy, the AIB Capital Markets division delivers a highly upbeat assessment of growth prospects underpinned by the significant rise in population and employment growth.

The economy remains close to full employment, says AIB, with the unemployment rate projected to fall to 4% by 2006.

Things just keep getting better and better for the Irish economy.