Economic Outlook looks good for Ireland, says Bank of Ireland

Ireland's economy is on course to grow more than initially thought this year.

The Irish economy grew by 7% last year and the Bank of Ireland's Economic Outlook shows GDP forecasts are up from 3.8% to 4.7%.

That is assuming the current trading arrangements between the EU and the UK stay the same after Brexit.

It also shows the fall in the pound after Brexit is hurting Irish exporters, and a lack of new housing is pushing up rent prices.

However Bank of Ireland's Chief Economist, Loretta O'Sullivan, says there is good news on the consumer front.

She said: "Solid consumer spending is on the cards in Ireland. Irish households look to be in a reasonably good place, we've seen the unemployment rate fall to 6.1%.

"Our own measure shows that consumer sentiment is at a two-year high, so tail-winds abound and this all bodes well for spending here."

Ms O'Sullivan says Ireland is on course to have one of the fastest-growing economies this year.

She said: "Solid consumer spending is on the cards, also underlying investment, especially construction activity is set to expand, while exports are benefiting from the improving global economy."

KEYWORDS: economy

 

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