No need for austerity budget, says Ibec

There is no need for the Government to do an austerity budget as the level of growth in the economy will reduce the fiscal deficit down to 2.5%, according to the employers’ group, Ibec.

Ibec is forecasting GDP growth to reach 6.1% on the back of a broad-based recovery in the economy, which includes a 1.5% increase in consumer spending, a 14.2% increase in investment and a 12.2% increase in exports this year.

Even though the Department of Finance and Central Bank both revised upwards their growth forecasts this year to 4.5%, Ibec has issued the most bullish assessment of the economy of any organisation.