Stockbrokers say aid programme needed to manage exit from bailout

Tuesday 23 April 2013 12.39
Goodbody Report: Lower than expected exports
Goodbody Report: Lower than expected exports

Ireland should apply for a precautionary aid programme to manage the exit from the bailout in a prudent manner, according to stockbrokers Goodbody.

In the group's economic report for the third three months of the financial year, Goodbody said that while Ireland is on track to become the first country to exit an EU/IMF bailout, vulnerabilities still exist.

It says the risks include the banking system and the recent rejection of the public sector pay deal.

In the report Goodbody's forecast for GDP growth is unchanged at 1.6% for 2013 and 2.6% for 2014.

It says the forecasts assume a slightly improved profile for domestic demand and a lower than expected outturn for exports.

Its economist Dermot O'Leary said that Ireland has shown discipline in implementing the EU/IMF bailout programme in recent years but that it is critical now to manage the exit from the bailout in an appropriately prudent manner.

He said: "There are a number of both domestic and international variables which could impact a successful exit and we need to have appropriate protection to ensure a fully successful transition to a full market return."

On housing, Goodbody said that despite a slowdown associated with the ending of the Mortgage Interest Relief at the end of last year, housing indicators "appear to be going in the right direction".