An economic forecast from Davy Stockbrokers predicts the Irish economy will grow by 4% in 2007 and 3% in 2008
While it says that 35,000 jobs will be lost in the construction sector over the next 18 months, according to an economic forecast by Davy Stockbrokers, the report predicts the losses will be offset by 15,000 new jobs in building of infrastructure and commerical property developments.
It also predicts general economic growth will remain strong.
Irish shares are currently underperforming European stock markets for the first time in years.
While London is up 8 percent this year, the Dublin market is down 5 percent.
Davy Stockbrokers says the main concern is the housing slowdown and it says construction output will fall by 25 percent.
This represents one of the lowest economic forecasts published recently.
While Ireland's economic growth remains substantially higher than Britain and other countries using the euro, Davy says growth in jobs will be 20,000 next year, down from 80,000 in recent years.
Irish Economy: Davy says economic growth will fall to 3% in 2008; unemployment will rise to 6% but performance will still rank among best in Eurozone
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