Economy to grow by 5.5% a year

The economy will grow by 5.5% this year and next, making it the best performer in the eurozone, according to HSBC’s quarterly assessment.

The country will benefit from stronger global growth in the first half of this year, due to its high degree of exposure to the buoyant United States, Britain and international economies.

Growth will stabilise at 5.5% in 2005, following expected cuts to eurozone interest rates later this year from their current 2% level. But the bank expects the industrial cycle to peak in mid-2004, though business investment will continue to grow thanks to low interest rates.