Morning business news - Oct 30

Friday, 30 October 2009 12:50

WORLD BOUNCE MAKES IBEC LESS GLOOMY - The employers' lobby IBEC has said its earlier predictions of the level of shrinkage in the Irish economy may turn out to have been just a little overcooked. This morning it revised the level of contraction it is predicting for next year to 1.6%. That compares with its previous 2.9% estimate - and it is suggesting modest growth in 2011.

The more positive view is because, as an exporting country, we will benefit as other countries which purchase Irish goods and services pull out of recession.

IBEC's senior economist Fergal O'Brien said the change in the forecast was due to a much stronger recovery in the global economy than had been expected. He said this would bring significant benefits for Ireland, particularly for exporters. But he said there were concerns that there could be a 'two-speed economy', with consumers and investment struggling.

Mr O'Brien said IBEC's forecasts for a return to growth in 2011 were also based on the assumption that the Government would 'take the correct measures' and cut spending in the Budget.

Asked where the jobs would be created in Ireland in the next few years, the economist said they would be mainly in the traded services and high technology sectors, but there had to be incentives and initiatives to improve people's skills.

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NEWS AND CURRENCIES - Latest figures show that UK property prices rose by 0.4% during October to take the annual rate of growth in average house prices into positive territory for the first time since last March 2008.

Japanese electronics giant Sony has reported a quarterly loss of $290m, hit by weak demand for televisions, cameras and other electronic goods.

On the currency markets, the euro is worth $1.4826 and 89.56p sterling.