Central Bank: Irish economy continues to do well

Business World:

The Irish economy continued to perform well into the early part of 2005, according to the Central Bank.

Releasing its second quarterly bulletin of 2005, the bank is forecasting GNP growth of about 5.25% and for this to continue at a broadly similar pace in 2006.

It also said that while consumer demand in Ireland has picked up only modestly, there has been stronger housing investment and a better export performance.

However, it warned that there are still risks aplenty, including high oil prices, continuing exchange rate uncertainties, and increasing signs of slower international growth.

"The global economy has been in generally good shape until recently, but more recent indicators suggest that growth is now likely to be less than earlier envisaged."

"The US dollar is susceptible to a potentially large correction, mainly because of the fiscal and external deficits. With a high proportion of our trade outside the euro area, the possibility of a rapid appreciation of the euro is one of the most significant risks facing the Irish economy."

Related:

Weak US dollar identified as greatest risk to Irish economy

Irish Central Bank forecasts growth of 5¼ per cent in 2005