Modest GDP growth this year as labour market stays weak

Ireland will post GDP growth of 0.5% in 2012 before recovering to a more respectable 2% in 2013.

However, consumer spending will remain on the floor for the next year, while the labour market will remain very weak.

House prices will see another year of double-digit losses in 2012, although the Government should succeed in efforts to reign the budget deficit within the troika’s 8.6% target, according to Merrion Stockbrokers’ latest quarterly economic review released yesterday.