The latest economic commentary warns that Ireland faces significant uncertainty and several factors could potentially slow economic progress both sides of the border.
The Ernst & Young Economic Eye summer forecast says that the island of Ireland is emerging from an economic depression. It predicts that the Republic of Ireland will see a further 1% contraction in 2010, before posting growth of 2.8% next year.
The forecast for Northern Ireland is more optimistic, with the accountancy group pencilling in growth of 0.8% for 2010 and 2.2% in 2011.
Ernst & Young says that despite currently being branded alongside Portugal, Italy, Greece and Spain in the 'PIIGS' group, Ireland has key economic competitiveness advantages which will ensure its emergence from this group.
E&Y points out that Ireland is at the top of the euro zone league for graduate skills in the 25-34 age group and has the fastest pace of price correction, which boosts cost competitiveness.
The accountants also point out that Ireland - and the UK - saw a more robust export performance during the recession than many of their competitors.
They say that although service sector exports have been impacted by problems in tourism and international financial services, they say it is important to note how many firms in the financial arena have returned to growth.
Today's forecast also confirms that the recession has been disproportionately severe on the young. It says that in the Republic, 56% of the total increase has been in the age category of 25-44, higher than the corresponding figure of 48% in the North.
E&Y says the figures are in contrast to previous recessions which have tended to impact older people more severely.
Ernst & Young says that Ireland's job rebound will not recover to 2007 peak employment levels until 2022, with the North's recovery expected to restore peak employment by 2017. It says the North's recovery period is soon as it has suffered a lower rate of decline in employment levels.
