Exports only bright spot in economy, says Davy

EXPORTS will be the only bright spot in the economy next year which will continue to endure weak growth, according to Davy Research, which has cut its forecasts for this year and next.

Gross domestic product (GDP) will rise by just 0.3% this year. Next year that figure will rise to 1.9%, the independent broker said.

GNP growth, which excludes the earnings of foreign multinationals, will decline by 1.5% in 2010 and will grow by 1.2% next year, well down on its earlier forecasts of 2.8%. The firm said the rate of economic decline has slowed, but adds that growth prospects for the economy “remain subdued”.