AIB predicts 4.8% economic growth in second half of year

24/10/2007 - 07:24:01
Economic growth is set to slow in the second half of this year to around 4.8%, according to the latest assessment by AIB economists.

The bank says it also expects growth to slow to 3.3% next year before rising to more than 4% in 2009.

This is a more optimistic forecast than that of the Government, which has predicted 3% growth next year and average growth of 3.25% over the following three years.

AIB says its assessment reflects a marked weakening in the housing market, slower growth in consumer spending and government expenditure on services.

It also says employment growth will be quite modest over the course of the next two years, with job losses expected in the construction sector.