Ernst and Young upgrades expected growth for this year

A major accountancy firm is predicting growth in the Irish economy this year, for the first time since 2007.

A major accountancy firm is predicting growth in the Irish economy this year, for the first time since 2007.

Ernst and Young has upgraded its forecast and now says we should see GDP growth of about 1.2% this year.

However, it added that economic growth in 2012 will be lower than previously thought, and downgraded the expected level from 1.1% per cent to just 0.5%.

They say the fall will be down to slowing demand for global exports and the impact of the eurozone debt crisis.

Company spokesman Neil Gibson also said Ireland would not see a return to pre-recession levels of employment for nearly 18 years.

Skills would continue to be needed in the high-end export industry, but in the skilled trades and lower-skilled sectors would suffer a "generational legacy of the recession".

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