Spending predicted to fall for fourth straight year

THE third major economic outlook report of the year has stated that while Ireland’s recovery is under way, growth will be “sluggish” and consumer, business and public spending will fall for a fourth straight year in 2011.

Ulster Bank’s latest economic outlook — which follows recent forecasts from the ESRI and the Central Bank — said progress in restoring lost output and employment will be “painfully slow”.

It added that employment levels could drop, this year, by a further 1.2% (albeit down from the 4% dip measured in 2010) and any hint of a recovery in domestic demand — a mix of consumer, corporate and Government spend — is unlikely until next year, which could have a knock-on effect of a 0.5% growth in employment.