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2013 IS SET to be the “turning point” for the fate of Ireland’s domestic economy, as households begin to share the optimism held by outside investors, the country’s employers’ union has said.
IBEC’s quarterly economic outlook, published this morning, predicts that an economic recovery will gain momentum this year, as households begin to feel more confident about their outlook and therefore begin to increase their general spending.
Confidence would also be improved by a deal on restructuring Ireland’s debts under the promissory note regime, which could help to cut down on the government’s overall spending bill and allow it to invest in other areas.
The body expects final figures for 2012 to show economic growth of 1.2 per cent – three times the growth of 0.4 per cent outlined in the most recent leaked European Commission reports on Ireland’s bailout programme.
This would make Ireland the second fastest-growing economy in the eurozone for the year, behind only Slovakia – and would then lead to growth of 1.8 per cent in 2013, ahead of the 1.1 per cent expected by Brussels.
The employers’ group also believes that private sector employment will begin to grow this year, ending successive years of decline, while unemployment will stabilise – though it will “remain high for some time”, the group concedes.
“The economy performed better than many predicted last year,” said IBEC chief economist Fergal O’Brien. “Exports had another record year and a number of indicators suggest the domestic economy has stabilised and is poised to recover.
“Although many Irish households continue to grapple with debt and unemployment, there is growing evidence that 2013 could be a turning point for the domestic economy,” he added.
Surging international investment in the sovereign, banks and utilities demonstrates that those outside of Ireland have growing confidence in our recovery.When Irish households start to have that same confidence, the recovery will gain greater momentum.
The report also projects an increase of 8 per cent in corporate investment in equipment and machinery, making 2012 the first year in five that the investment sector had not been “a drag on economic growth”.
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The good old confidence trick. We’ll pass the burden of the banking crisis to the tax payers of 2025 and call it a great success. We’ll pay half the property tax and think it wasn’t too bad. We’ll notice more “for sales” signs and think that things are returning to the “normality” of 2002/06. We’ll think the EU presidency + gathering, means that the Irish are loved/important again…so between the above and the theft by the State of pensions and higher DIRT – the oldies will start spending again.
Is today April 1st? Until Banks start lending money for anything other than overdraft clearance nothing will change. Give us our money back if you won’t lend it!
This announcement by IBEC is a kick in the face to every Irish person this Monday morning. We’ve been listening to these arseholes trying to put a spin things for last four years, only to see them coming out the following month and adjusting their “forecasts” back down again. They have a neck coming out with this Mystic Meg horseshít, with no data or even a half believable scenario being presented for the purposes of backing up their “analysis”.
Yawn
that would be an ecumenical matter
The photo above says it all.
And lance Armstrong didn’t take drugs
Government is organised crime. Everything they own is stolen and everything they say is a lie.
: )
Sorry flopflip- I pressed the wrong button. Didn’t mean to invade your space!
What they don’t say though, is where people are going to get this new found wealth from, that they will spend in the domestic economy and invest in new small start up businesses. More government instructed spin is all this, we move further away from a recovery with every week this government of lying stoogies is allowed to remain in office.
This is an act of desperation. First IBEC hsve been dictating what cuts should be made and where. Now that we’ve been cut to the bone they want us to have confidence, cheer up , and spend what little disposable income we have on their products. They can be optimistic because of the export figures but lets face it..few here have any money left to spend.
These are the “experts” who couldn’t tell us the crash was coming…
This must be the green shoots.. Or is it the corner we’ve been waiting on since 09? Or maybe the soft landing of 08? The stability and jobs of 2013 is going to be spectacular. The €50 1.6 million of us have left at the end of the month is going to power Ths IBEC prediction to the moon.
Yay, triple dip recession!
Since when was any forecast made on growth accurate, 3 months time it will be downgraded.
Lets see what the troika think first and then choose who to believe I think a name should be put behind these statements and not just a department or whatever and it will show who exactly believes in these sham forecasts
Confident about the economy? Well now, and how do we spend money we dont have? I am a pensioner, and they are taking away the pennies by stealth, a “charge” on this and a tax on that I wonder do the traitors sitting on free leather in the Dail, which is the worst example of a “gov” in the history of this State [sorry, ex State, we are now owned by Germany] in any event I wonder how they manage on the pittance they are paid ever month?
I’m sure I heard them spinning that crap in 08, 09, 10, 11, and last year. As the saying goes, throw enough shit and some of it is bound to stick!
There’s one reason I think we might start to see a more positive outlook economically, the US. The US economy is recovering quickly, largely due to big deficits and quantitive easing, things our European and National political upper class are horrified of, the Germans due to the cultural legacy of Hyper Inflation, but what excuse do our gombeens have? Let us not forget we were pressured into a deal to limit the power of spending money to make money.
Getting growth on track is more important than the defecit, yes you need both but emphasis should be on growth, that’s why the U.S. is recovering, despite trillion dollar decifits, which most economists think will disappear thanks to growth. http://www.businessinsider.com/the-end-of-the-new-normal-2013-1
The surge in international investors wouldn’t have anything to do with gov giving away bonds which have a profit of 10%- making ?67m a year and sold for ?10m to same bondholders we weren’t on hook for in first place and then saying ” didn’t we do well” and planning to do so again.
What cornflake box did ibec get that statement from? Doesn’t matter what rubbish you spout if your wage doesn’t depend on it!
Finger
On
The
Pulse
A turning point into more cuts & taxes.
What a bunch of doom and gloomers on here…you lefties are a sad bunch…your Just Say No committee meetings must be a bundle of laughs…whinger handout merchants
It’ll work if those who ‘have’ out spend the ‘have nots’ by about 3 to 1….so no,probably not yet
That’s not a turning point its the U bend of a toilet
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