Domestic politics ‘the main threat to growth’

The biggest threat to Ireland’s economic recovery is local political upheaval as opposed to events in the wider eurozone economy or the UK, according to one leading economist.

As part of his latest economic outlook, published yesterday, Friends First chief economist Jim Power said he expected the Irish economy to grow 4.5% this year in GDP terms.

Including, as that does, multinational company contributions, this will come about despite consumer spending habits remaining in a fragile state, albeit improving. The latter, according to Mr Power, will grow by 2.5% this year and next, while GDP growth will slow to 3.8% in 2016. He added that Ireland should be the strongest growing economy in Europe next year.