Ireland poised to benefit from global upswing

The OECD and IMF have been predicting for some time that global growth would strengthen in the second half of 2013 and through 2014, provided the world economy did not suffer any fresh adverse shocks.

The ongoing support from accommodative monetary policies, less severe stance of fiscal policy, and an improvement in financial markets and general confidence are all expected to contribute to a pick-up in economic activity.

Recent indicators are pointing to such a strengthening in economic growth. Notably, the JP Morgan Global Composite PMI, a leading indicator of economic activity, jumped to 54.1 in July, its highest level in 16 months. Other leading indicators have also been on the rise in recent months, suggesting that growth is indeed picking up.