Wednesday, August 24, 2005

The Bank of Ireland predicts that Irish GDP will grow by 5% in 2005


The Irish economy will grow by 5pc this year, fuelled by domestic demand and consumer, Government and business spending, Dan McLaughlin, chief economist with Bank of Ireland said today.

In his quarterly economic outlook for the year, McLaughlin forecast GNP of 6pc, inflation at 2.5pc, unemployment at 4.3pc and an Exchequer balance of E0.4bn.

"Ireland's manufacturing led growth has given way to a services and construction based expansion with domestic demand, particularly consumer spending, driving growth. This consumer spending, allied with a strong advance in capital investment and robust government spending, will generate a 6pc rise in domestic demand, an acceleration from the 4.7pc increase recorded last year and the 4pc rise in 2003. Economic growth as a whole, however, is likely to rise by 5pc in 2005 dampened by weak export growth, in turn reflecting the malaise affecting the manufacturing sector," he said.

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