Davy predicts economy will grow by 5.5% in 2020

The economy will grow by 5.5% this year, according to a new report by Davy.

It is also forecasting a jump in consumer spending, house prices and employment.

Davy's GDP projections are ahead of those of the Central Bank and the Department of Finance.

It stated that the revised forecast is on the back of strong foreign direct investment (FDI), exceptional export performance and expansion in the multinational sector.

"As we move into 2020 with the risk of a no deal Brexit having moved away we may see a little bit stronger growth in the indigenous economy," said Chief Economist at Davy, Cathal McCoille.

"The reason we have these very strong growth rates of 5.5% is because we think the very strong growth in export and the tech sector is likely to continue."

Davy is predicting that house prices could rise by 2% this year as well as an increase in mortgage lending.

"So 2% house price inflation that is slower than wage growth, if anything I would say that the risk might be slightly to the upside if people do see that clarity around Brexit so they may be more willing to bid up the price of houses, particularly at the top end."

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