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Updated 10.37pm
IBEC HAS UPGRADED its 2014 growth forecast for the Irish economy, calling it a ‘spectacular’ year.
This growth was to the tune of 5.7%, according to the employers group’s Q4 Economic Outlook.
Ibec forecasts GNP to rise by 4.2% in 2015.
“Ireland is well placed to continue growing strongly next year,” Ibec’s chief economist Fergal O’Brien said, “Unemployment looks set to fall to 10.5% this year and we predict a further drop to below 9% next year.”
These positive trends look set to continue over the coming months as low inflation supports consumer purchasing power. Record low interest rates should further boost investment.
“Growth is coming from a broad range of sources, with domestic demand and trade contributing strongly. Ireland is set to be one of the world’s best performing developed economies this year.”
Key factors include a weak euro and a rise in demand for Irish exports, positive FDI forecasts, rising employment, and the Exchequer coming in ahead of target.
Low oil prices also benefited Ireland, with Ibec estimating that for every $10 fall, there’s an additional €100 million in spending power.
Gloomy consumer confidence figures for Q3 haven’t put Ibec off from predicting spending growth of 2.7% next year.
The condition of world economy has been cited by others as cause for concern in future.
A weak ruble looks set to affect Russia for as long as two years, potentially dragging down other economies.
Growth figures have been less than optimistic in the Eurozone, with France continuing to live up to its reputation as the new ‘sick man of Europe’.
The Economist has even suggested there will be a triple-dip recession.
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It’s just spin !! To say austerity is working . Which any normal person knows austerity only works for the rich .. Abolish the USC charge for starters you might get customer confidence .. And reflect petrol prices at the pumps
I agree with you. When I see the end to USC and my salary increased to make up it has lost over the last 6 years I’d believe it.
We have been robbed by Politicians and Bankers and now they want us to believe more of their lies!!!
James it’s Christmas give us all a break from your daily moans, go get yourself a life, there’s a good chap!
IBEC are correct that “growth is coming from a broad range of sources” but forgot to mention the illegal drug, smuggled cigarettes and prostitution estimates which are now included in Ireland’s GDP figures to give an artificial appearance of growth.
It is funny how being billions more in the red this year can be made to look like growth. I don’t think people are being fooled by this.
So you all want tax levels to go back to what they were before the recession? I.e. you want them down to low, unsustainable levels, making us completely dependent upon revenues from other sources such as stamp duty which need a property bubble to maintain. So then we need policies to inflate this property bubble until… POP! And we’re right back at square one.
Ireland was a low tax country before the recession and this was part of the problem. Our taxes are still low relative to other countries.
I have a life thank you !! Am just not blind to the carry on of this governments spin and lies thank you
Sob sob
@Budd so if the country is running a deficit the fact the economy is growing doesnt matter and shouldnt be treated as good news ?
the place is getting too populated, very little housing supports, rising rents cos of demand for lack of. huge competition for jobs, cut throats everywhere, coming in here, ravaging for the dream. ahhh not a nice place here. i’ve moved to the west to try and avoid the crap. sink in it.
And yet, I seem to have less money left in my pay. But I’m really delighted that GNP is rising, something with minimal effect on most people.
For who the rich this is the worst christmas financially I’ve had since the start of this farse.a constant flow of money out of my account between ever rising bills, ever rising costs of running a car and every year theres a new tax added on to the the already long list of taxes. Whens this improvement in the economy going to filter down to the fools who work for a living.
The cost of buying diesel has gone down.
Nothing to do with the economy..diesel is dropping because the wholesale price of oil is falling…government percentage of duties and cat is still the same.
Vat
Fully agree Ray. You’re classed as lucky and even comfortable if you meet the bills as they fall due. At this time we are seriously considering packing in our jobs and leaving. We’re not young, but we’re debt free and solvent and seriously concerned about the continued erosion of the quality of our lives.
The cost of running a car fell this year.
No it didn’t. My car insurance was more this year wiping out any savings on lower fuel costs.
But isn’t inflation running at 0.5%, probably the lowest for decades? Unless you’re paying rent in Dublin, most costs are the same, or have gone down. Interest rates mean that mortgages are as cheap as possible, petrol is cheaper, clothes are cheaper. I’m sorry the facts don’t agree with ur opinion.
Some people are never happy !!!!!
Are you joking?, this country is a massive scam, 41% tax on savings interest (if you can get interest), sod all bank competition allowed, pension tax, 70% petrol tax. Endless red tape if you want to set up a business. Signed up for billions of bondholder debt.
The increased GDP stats are based on a stock bubble coming out of the US plus fiddling the GDP stats to now include drugs and hookers.
Dublins economy has improved spectacularly. I wish the same could be said for the rest of the country. Rural Ireland is still pretty grim.
I for one am glad the economy is doing well. For those that think things couldn’t be worse you are kidding yourselves, if the economy was flat lining or worse we would facing into further cuts. Of course good news doesn’t suit some who have their own agendas
Its all for your own good don’t you know.
Read Shane Ross’s article on Sunday Indepenðent of 14th Dec. outlining how these supposed high growth figures are being artificially puffed up. It’s a load of spin and bull!
The global economy looks like its about to go into a tailspin and these folks think we’re protested?
Somebody has to brew the coffee in order for it to have an aroma, I guess….
Great to see the Irish economy roaring ahead… Let’s leave the moaners in the dust.
When you think about it is it any wonder those moaning day in and day out that they aren’t being paid enough, that other people have better jobs, that other EU countries citizens get everything, don’t want to pay for their taxes aren’t succeeding in life… Who wants to work with or give a person like that a decent job.
Not a mention of increased employment, so jobless recovery?
Just means the next bubble to pop is that much closer….
The usual nutters are running around wasting money this Christmas – they’ll get a sharp shock in the new year as per usual and drag us all back again.
hehe yep
doesn’t surprise me this spin, to get people to spend. we’re not all that thick.
Amazing that any attempt to be a little bit objective about the news is dismissed as “moaning” and “sob sob.” I’m just waiting for someone to tell us that “cribbing and moaning is a lost opportunity”, and them going on to wonder why we don’t top ourselves!
Why you deleting comments?
Here we go again!
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