Analysts lower growth forecasts

Lower wages are driving the Irish export market but a continued fall in domestic demand has led analysts to downgrade their forecasts for the economy for this year and the next year.

Investec Ireland export analysis report, found that Ireland had made gains in competitiveness. Head of treasury, Investec Ireland, Aisling Dodgson, said falling wage costs have allowed exporters to be more productive.

“Various indicators show that Ireland has regained the ground it lost over the first half of the previous decade as labour costs have been restrained and as firms have striven to improve productivity.