IBEC talks up economic outlook

IBEC has significantly brightened its forecasts for Irish economic recovery, saying that the country is beginning to pull out of recession faster than expected.

The employers’ representative organisation is now forecasting contraction of 0.7% in Ireland’s GDP this year, adding that growth of 2.1% is achievable in 2011.

Previously, IBEC had felt the economy would shrink 1.6% in 2010 and grow only 1.7% in 2011. Speaking ahead of the launch of the body’s latest quarterly economic trends report, IBEC’s director general Danny McCoy said the more optimistic outlook and restoration of confidence comes from the Government’s “tough action to stabilise the public finances”.