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THE GOVERNMENT HAS raised its growth forecast for the economy for 2012 by 0.2 percentage points to 0.9 per cent of gross domestic product in its medium term fiscal statement.
In the document released by the Department of Finance last night the growth forecast was raised after better than expected economic performance in the third quarter of this year.
However the growth forecast for next year has been reduced to 1.5 per cent from 2.25 per cent in line with expectations that there will be little or no growth in the eurozone and in countries which are Ireland’s main export partners next year.
Unemployment is also expected to remain high with the Department of Finance not expecting it to go below 13 per cent until 2015 at the earliest.
The budget deficit target – this is the gap between what the amount of money the government raises and spends – will be 8.3 per cent of GDP, three percentage points lower than the target of 8.6 per cent.
Ahead of next month’s Budget the government said there would be no additional austerity measures beyond the €3.5 billion adjustment that is expected.
This is expected to include €2.25 billion of cuts and €1.25 billion of revenue raising measures.
Budget adjustments of €3.1 billion in 2014 and €2 billion in 2015 are also still forecast in the government’s latest statement.
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Well that is great news NOT. How about a stimulus package instead of an austerity package. Austerity does not work fullstop.
Obvious with thumbs down people love austerity well your in luck people it’s going to continue.
they haven’t time for this they have more important thing to do like ban smoking on dail grounds surely that will take 3yrs 2tribunal’s 1 happy bunch in the dail for doing feck all and getting monster pensions
Declan
A stimulus package would require the borrowing of money or raising more from the Budget to then spend. Could you advise us as to where such borrowings could come from and what they should be invested in.
When was the last time government correctly forecast anything in relation to our economy? It’s all fairytales that an average 6 year old would see through. They are about to take €3.5 billion out of the economy, and then they reckon growth will be less than this year. Wow are they a crowd of geniuses or what? Personally I shall be amazed if we don’t fall back into recession next year.
Totally agree taking money out is only going to increase problems. Drop VAT by about 5% get the domestic economy moving . Going to be a bleak Xmas for retailers I fear.
Suspect it’s going to be a bleak xmas and 2013 for everyone Declan. Excluding those at the top of the tree.
“Fall back into recession next year” I didn’t even realise we were out of this recession yet.
NOV 24th, fight these serious budget cuts by marching with us,,, join our page. https://www.facebook.com/events/122229381266866/
Hope the response has been extremely good Joe. Hard to get tens of thousands to march in this country. Probably need a blue flu day but will people support I doubt as we are not united very divided as a nation.
And you think a march will stop budget cuts . Let’s be realistic here we can’t spend what we don’t have simple
We could afford to pay out €19 billion to secured and unsecured bond holders this year Robert. The government plan to pay out about the same figure in 2013 maybe we should look at just were the money is going and then review what cuts are needed and by how much.
@Robert agreed we can’t spend what we don’t have.But could we at least get some fairness?
My calendar says we’ve a month and a half left in the year. So the forecast for 2012 is a bit late coming.
have your say