Growth forecast raised to 4.8%

Specialist bank Investec Ireland is the latest commentator to up its forecasts for economic growth, saying the core elements of a broad-based recovery remain intact.

In its fourth quarter economic monitor, published yesterday, the investment banking and asset management specialist said it now anticipates the economy — in GDP terms — to grow by 4.8% this year, by 3.5% next year, and 2.9% in 2016. A rise in consumer spending and confidence levels (retail sales up in each of the past eleven months, and consumer sentiment recently hitting its highest level since early 2007) and lowering unemployment levels form the basis of Investec’s positive outlook.

Its latest forecasts are up from GDP growth levels of 2.5%, 2.8%, and 2.5%, respectively for this and the next two years. The revisions are in line with the likes of the Department of Finance and the European Commission.