Shoppers will now drive the recovery, says Merrion

Consumers spending again on the Irish high street will now start driving the economic recovery, even though households are still juggling with huge debts and unemployment levels are still high, a leading economist has predicted.

Alan McQuaid, chief economist at Merrion Capital, said retail sales and spending by households and businesses will boost growth this year and next. He now says the economy will grow very strongly this year, by 4.2%, and will maintain its momentum to expand by 3.9% in 2016.

“Retail sales, though erratic, are up from year-on-year,” he said. “We will see wage increases. Employment is rising. More people are confident tthe crisis is over. All the ingredients are there for consumers.”