Goodbody issues more upbeat report on economy

PROSPECTS for a recovery in the Irish economy have improved in recent months but rising interest rates will act as a drag over the coming years.

This is according to the latest economic commentary from Goodbody Stockbrokers. It said while it entered 2009 with uncertainty as to the extent of the likely economic contraction, focus has now turned to what trajectory the economic recovery will take on. It is now more confident that a recovery is on the way, which will be led by an improvement in exports.

Goodbody expects GDP to contract by 1.1% in 2010, compared with -3.7% previously, before expanding by 2.4% in 2011. It had previously expected an expansion of 1.2% in 2011.