Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Governor of the Central Bank, Patrick Honohan.
Optimism

Central Bank: The forecast is good

The Friday feeling hits the Central Bank.

THE CENTRAL BANK today announced good economic news. Amid the doom and gloom and bad weather the bank has raised its forecast for Ireland in its latest economic outlook. While April showed a 0.5% decline in GDP, the bank now believes there will be a 0.8% rise in GDP over 2010. The boost comes as a result of rising exports.

GDP, which is said to be a better indicator for Ireland, given the large number of foreign multinationals who repatriate their profits abroad, is predicted to decline by 1% in 2010, but the figure is lower than the 1.5% decline previously predicted by the bank.

However, it’s not all good news, as the bank said it believed employment growth was unlikely until the end of the year.

Predictions for 2011 remain bright, with growth of 2.8% in GDP predicted and 2.2% in GNP. The bank said said the figures were contingent on the government cutting the budget deficit, the implementation of the Croke Park agreement and the recovery of the banking sector.

The good news comes a day after a report was released suggesting an increase in consumer confidence.