PWC predicts modest economic pick-up next year

Price Waterhouse Cooper is the latest organisation to predict a virtual halt in economic growth for the rest of this year.

The firm says it expects a growth rate of 0.4% for this year, with a modest improvement to 2% growth in 2009.

PWC says the continued downturn in the construction sector led to a contraction in the Irish economy in the first quarter of this year.

It says inflationary pressures are continuing to build amid worsening conditions in the labour market.

The company also says falling construction employment levels will have an adverse effect on the migrant population and, if large amounts of immigrants return to their own countries, it will have a very negative effect on consumer spending growth.