A new IBEC report has painted the Irish economic recovery in an extremely positive light, with projections for sustained growth in employment, consumer spending and GDP for the remainder of 2014.
The report revised its GDP projections based on an above-expected investment in the economy of 21.5 per cent (IBEC’s earlier prediction was 15.5 per cent).
In addition to this increase in domestic investment, the report also predicted that consumer spending would increase by 1.9 per cent over the next twelve months. Unemployment is also expected to drop to 10.9 per cent this year thanks to an estimated 50,000 jobs coming on stream.
‘The recovery is gaining momentum, with spectacular employment growth in the private sector and strong increases in consumer confidence, business confidence and investment. Ireland is on the way back,’ said Fergal O'Brien, IBEC’s chief economist.
‘The 2013 GDP performance was not a true reflection of the current health of the Irish economy - the economy has been performing much better than reflected by the GDP numbers for some time now.
‘The employment growth trend actually provides a much better measure of what is happening in the real economy at present,’ said Mr O’Brien.
The IBEC report also suggested that the government must look at a number of key areas if it is to sustain this competitiveness. These included tax reductions, greater investment in infrastructure and education, and more support for entrepreneurs.