The economic outlook for the Irish economy has been given a cautious boost in a new report - despite the bad condition of the public finances.
The report cautions that Irish public finances remain 'a mess', and tougher remedial action is needed at Government level over a number of years if finances are to return to acceptable levels under European law.
Bloxham stockbrokers today published a study that revises upwards its forecast for economic growth as 'green shoots' now appear more likely in the global economy.
It forecasts an 8.5% contraction in Irish economic growth this year. The previous forecast was for a 9% fall.
Economist Alan McQuaid says he is cautiously optimistic that the worst of the recession is behind us, and that because the collapse in economic activity was so severe at the end of last year it should mean the bottom has been reached.
The report says significant risks to growth remain, including NAMA, currency movements and deflation.
Bloxham forecasts that house prices will fall by 12% in 2009, and that unemployment will peak at 15% next year.
