Growth of 1.1% forecast for next year

The Nevin Economic Research Institute forecasts that the economy will grow by 0.5% this year and 1.1% next year, with unemployment dropping to 10.4% by 2016, according to its latest Quarterly Economic Observer.

“In the Republic, we anticipate small but positive economic growth in 2014, although concerns remain regarding the impact of contractionary fiscal measures in Budget 2014, a weakening outlook for our export markets, continuing high long-term unemployment, the continuing overhang of personal debt and the impact of changes in the pharmaceutical sector,” the institute said in the report.

In its last assessment, the Irish Fiscal Advisory Council said if growth came in under 2% over 2014, the Government would have to raise the budgetary adjustment next October by more than the planned €2bn.