Consulting group PricewaterhouseCoopers has forecast that the economy will grow by 5% this year before slowing to 4% in 2008. The figures are for gross domestic product, which includes profits from multinational companies based in Ireland.
Its latest economic analysis says strong consumer spending and export growth drove activity in the first half of this year, with jobs and earnings growth supporting spending.
But PwC says the impetus to spending provided by SSIA accounts will begin to fall away next year, while the cooling housing market will lead to a significant slowdown in house building.
Its report also says the US, UK and euro zone economies are likely to slow in the short term, limiting future export growth, while high inflation and a stronger euro will also hit competitiveness.
