Domestic spending to remain weak

Any recovery in the economy will be dependent on global events, as domestic spending in Ireland is likely to remain weak for the remainder of this year, according to Bank of Ireland chief economist Dan McLaughlin.

Speaking at a breakfast seminar in Carlow, jointly organised by Carlow-headquartered taxation and finance advisors Lalor O’Shea and Bank of Ireland, Dr McLaughlin said that there were signs of stability emerging in the global economy, with the US expected to return to growth in the third quarter in 2009.

He said the reality is that domestic spending is likely to remain low for the rest of this year and, almost certainly into next year.