Stockbroker NCB has upgraded its forecasts for the Irish economy this year and next year. It now expects the economy to shrink at a slower pace in both years.
NCB now expects economic output this year to drop by 7.6%, compared with its previous 8.1% forecast, while it has lifted its 2010 forecast to a fall of 2%. Its previous expectations was a 3.1% contraction in 2010.
NCB said it was making the changes because recent Irish economic figures had stabilised, and there had been better than expected data from the euro zone and US.
But economist Brian Devine warned that its upgrades did not mean it saw any differences in the path of recovery. 'The bottom in the economy will be formed in H12010, with sustainable growth not expected until H2 2010,' he said.
NCB said any recovery would be long and gradual, with unemployment, public finances and the oversupply of property continuing to hit domestic demand.
