Ireland's 'lost decade has ended' as the Irish economy and domestic spending will return to its previous 2007 peak this year, according to the quarterly Irish Economy Health Check, published by Goodbody stockbroker.
Goodbody’s report said that a rapid growth in construction and consumer spending will 'push core domestic demand beyond previous forecasts' and 'Ireland will retain its status as one of the fastest-growing European economies'.
It also indicated that it is raising its forecasts for core domestic demand in 2017 from 3.7% to 4.5% and in 2018 from 3.6% to 4.3% respectively.
"Ireland remains on track for a fourth year in succession of rapid growth. On the back of impressive momentum in the domestic economy, we are revising our forecasts upwards for both 2017 and 2018." Dermot O'Leary, Goodbody chief economist said.
The real level of consumer spending will surpass its previous peak in 2017, albeit will be 6% lower on a per capita basis, This has been driven by growth in disposable incomes, which will be 3% above 2007 levels this year.
He stated, "More positive investment trends, construction growth and robust consumer spending are to be the drivers of this performance."
The report said unemployment will fall to just 5% in late 2018.
"Employment growth of 3.5% is the most visible evidence of strength in the Irish economy, but inflation pressures are starting to emerge." He said.
"Brexit-related migrant flows have the potential to ease these pressures by adding to labour force growth."
© 2017 - Checkout Magazine by Donna Ahern