Economy to benefit from global growth

ANY upsurge in global activity will see the Irish economy growing significantly, Bank of Ireland chief economist Dan McLaughlin predicted yesterday.

Global growth he said would be US led and signs of this were already apparent with renewed interest in equity markets. Because the Irish economy had weathered the downturn well, it was in a good position to grow quickly in response to any upsurge, he said.

Speaking at the Cork Chamber of Commerce business breakfast in association with the Irish Examiner, he said employment in Ireland has remained remarkably strong, even though growth had shifted from the private to the public sector: “If we are at the turning point, private sector employment will push up. If this is the case we will have come out of this remarkably well.” Dr McLaughlin believes the Irish Central Bank has been too pessimistic about unemployment. The Central Bank has forecast a rise to 5.6% for the year, but half way through 2003 the rate is only 4.6%.