Broadbased recovery will ‘push GDP growth to 3.7%’

A broadbased recovery will push Irish GDP growth to 3.7% this year and 3.5% next year, although political instability poses a potential headwind, according to Investec chief economist Philip O’Sullivan.

“We have noticed a recent spike in investor queries about political stability in Ireland with an election expected in the coming 12 months. The latest polls suggest no one party commands even a quarter of the public’s support,” said Mr O’Sullivan in the latest Investec review of the economy.

“In a bear case scenario, where we move into a period of prolonged political uncertainty, this could have adverse consequences for Ireland’s attractiveness as a destination for foreign direct investment,” he added.