Davy forecasts lower economic growth

HOUSE completions will fall by 40% between now and 2008, with unemployment hitting 6% and GNP halving to less that 3%, putting severe pressure on Government finance, according to Davy Stockbrokers.

And Davy economists Robbie Kelleher and Rossa White believe there is more bad news on the way for mortgage owners with another interest rates rise “probably” in November.

With housing starts figures for August showing a decline of 58% year-on-year compared with August of last year, Davy has sharply reduced its forecasts for the housing sector.