Economy to grow by 2.5% next year

THE Irish economy is expected to grow modestly, by 2.5%, next year – ultimately being led by a 4.5% annual increase in exports – but no real recovery in unemployment levels is anticipated before 2012.

In its Spring 2010 quarterly economic commentary, which was launched yesterday, economic think-tank the Economic and Social Research Institute (ESRI) said it sees Ireland’s GDP (Gross Domestic Product) falling by 0.5% this year and GNP (Gross National Product) remaining static – but the latter growing by 2.75% in 2011, while GDP grows by 2.5%. It said that while 2011’s return to growth is to be welcomed, “it should be seen as a modest pace of growth”.

“One manifestation of this is that employment is not expected to grow between 2010 and 2011. Instead, we expect the number employed to average close to 1.86 million in both 2010 and 2011. In spite of the stability in the numbers employed, we expect unemployment to fall between 2010 and 2011, averaging 13.75% in 2010 and 13% in 2011,” the ESRI said in its commentary .