Irish economy ‘faces German and French vote headwinds’

The Irish economy will grow at a “significantly” slower pace and the possibility of a recession in Europe cannot be ruled out as it faces into key elections in Germany and France next year, according to Merrion Capital.

In its latest quarterly outlook, Merrion cut its Irish growth forecast to 3.5% this year from 4.8% in its previous outlook and has pared back 2017 growth to 3.2% from 3.8% previously.

The outcome of the federal election in Germany and the presidential vote in France could well decide the future of the EU and unsettle economies and markets for some time, its chief economist Alan McQuaid warned.