Friday, October 13, 2006

Overseas earnings boosting Irish GNP growth


Bank of Ireland economist Dr Dan McLaughlin says profits from Irish assets abroad are fuelling strong growth in gross national product (GNP), which he expects to expand by 6.6% this year.

The economist says gross domestic product (GDP) will expand by 5-6%. GDP has traditionally outpaced GNP because it includes profits made by multinational companies based here.

In the bank's latest quarterly economic outlook Dr McLaughlin says employment growth will fuel a 10% rise in consumer spending this year. He says the pace of employment growth continues to surprise, with the service sector replacing construction as the main engine of jobs growth.

On inflation, he predicts that the average will be 3.9% this year, falling to 3.4% next year as oil prices fall.

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