Domestic demand is driving the economy this year, says McLaughlin

Brian O’Mahony, Chief Business Correspondent

Consumer, Government and business sector spending will produce GDP growth of 5% said Bank of Ireland’s chief economist, Dr Dan McLaughlin.

He is predicting GDP growth of 5% for 2005, up from 4.5% in 2004 with GNP forecast to jump from 4% to 6% reflecting the strong services backed nature of current economic growth.