Growth in euro area goes on

ECONOMIC recovery is continuing in the eurozone with growth expected to be slightly higher than the 1.7% forecast for the year, according to the European Commission.

However, the key to this continuing into next year hinges on consumer confidence and a surge in consumer spending together with no major oil price increases.

Figures for Ireland released earlier this week suggest growth in 2004 of 3.7%, up from the earlier forecast of 1.4%, boosted by a 20% increase in exports and an increase of 12% in capital investment. Consumer spending is contributing about 2% to growth and there are predictions that this will increase.