A report by Bloxham Stockbrokers says it is difficult to see a pick-up in domestic demand next year, with the Budget planning to take €6 billion out of the economy.
Economist Alan McQuaid is predicting GDP growth of just under 1.5% next year, mainly due to strong growth in exports, which he describes as the 'one ray of light' in a gloomy economic picture.
His report says growth in the UK and US should be reasonable enough to boost demand for Irish exports, while he also expects a stronger dollar and sterling to help indigenous exporters.
But Mr McQuaid expects personal spending and investment to both fall for the fourth year in a row in 2011. He also expects the jobless rate to remain high next year, though he adds that emigration will help keep the rate below 14%.
