Exports set to pick up, bank predicts

Export performance should pick up again this year despite a largely flat performance in 2013, with the domestic economy also in line for a more pronounced recovery.

In its latest quarterly economic outlook — its first for this year — Bank of Ireland yesterday said it expects the economy to grow by 2.5% in GDP terms this year and by nearly 2% in GNP terms, when the contribution of foreign multinationals is excluded.

Bank of Ireland’s GDP forecast is ahead of the Government’s, which factors in 2% growth. The bank expects exports to significantly strengthen on the back of improved activity among the country’s trading partners.

The bank’s 2% outlook for GNP growth also marks a slight improvement on its November outlook when it pencilled in growth of 1.5%.

Having also previously suggested 0% GDP growth for 2013, Bank of Ireland now believes last year’s increase to have been around 0.5%.

Michael Crowley, Bank of Ireland’s senior economist, said domestic demand should grow by over 1.5%, this year, following an increase of less than 0.5% last year.