IBEC forecasting growth of 1.8% this year

Monday 21 January 2013 23.46
IBEC believes domestic demand will rise but there will be no increase in consumer spending
IBEC believes domestic demand will rise but there will be no increase in consumer spending

Employers' group IBEC is forecasting economic growth of 1.8% this year, slightly above Government forecasts.

In its latest economic forecast, the organisation says Ireland’s economy grew by 1.2% in 2012, making it the second fastest growing economy in the eurozone.

It believes a slight increase in domestic demand will help the economy to grow at a slightly stronger rate this year.

The report also says consumer confidence may be boosted by a deal on the promissory note payments, which would help the domestic economy.

Elsewhere in its outlook IBEC also notes a survey of employers, in which 39% say they expect to increase pay by an average of 2%.

However, six out of ten employers say they will freeze pay at 2012 levels in a bid to regain competitiveness.

IBEC sees employment levels stable, but with high unemployment continuing.

It also forecasts no increase in consumer spending.