Economists Robbie Kelleher and Rossa White estimate that Irish GDP and GNP grew by 5.5% and 6.5% this year, and say both should expand by 5% next year
The economists have lifted their forecast for consumer spending growth next year to 7%, boosted by the release of some €10 billion from SSIA accounts and the recent Budget tax and spending measures. But they say the pace of growth in the building sector will slow to less than 0.5%, with house building falling from 92,000 this year to 87,000.
But the Davy report describes 2008 as 'payback time' for consumer spending, with a reversal of the SSIA effect and a fall in construction output. It predicts GNP growth of 3% for 2008.
Davy says Irish economic growth will remain exceptionally strong next year before falling significantly in 2008
Construction boom still evident in jobs figures