Irish growth forecasts increase

ECONOMISTS have increased their Irish growth forecasts for next year, ending two months of downgrades and signalling that the country’s medium-term prospects are improving.

Debate about a Greek sovereign debt restructuring has pushed Irish bond yields to euro lifetime highs and a further cut to medium-term growth prospects would have caused unease in Washington and Brussels.

Instead, a Reuters poll of economists put 2012 GDP at 2.1%, compared with 2% last month. They also upgraded estimates for 2013 GDP growth to 2.7% from 2.6%. Outlook for 2011 GDP growth remained at 0.5%.