The latest economic outlook from Merrion Stockbrokers has forecast no change in Ireland’s GDP this year, followed by a 1.5% rise in 2014.
Chief economist at the firm, Alan McQuaid, has blamed the downward revision on weak exports, with the growth rate for 2012 revised down to 1.6% from the initial figure of 2.9%. This compares to growth of 5.4% in 2011 and 6.4% in 2010.
The outlook says this reduced rate will make it difficult for the wider economy to grow in 2013, which in turn will have an impact on Ireland’s budgetary position.
However, Mr McQuaid says Ireland is in a better position than most to benefit from the eventual upturn in the global economy, while there is also sign of renewed activity in the British economy.
Merrion also expects the average unemployment rate to fall to 13.7% this year, 1% lower than in 2012.
