Economist: Recovery will only kick in when SME sector starts to pick up

THE economy is on the turn but real recovery will only kick in when the SME sector starts to recover and that will not happen for some time.

According to economist Jim Power the country faces two further tough budgets where billions more in savings have to be found.

Mr Power, chief economist with Friends First, warned that the borrowing problems in Europe are a huge drag on the economic outlook and that Greece could still “default” on its debt.