Group says Irish economy will grow by 4% this year, below ESRI’s prediction of 4.7%
The OECD on Tuesday forecast that the Irish economy will grow by 4 per cent this year, and by 2.9 per cent next. This is lower than the forecasts of 4.7 per cent for 2018, and 3.9 per cent for 2019, published on Monday by the ESRI.
The survey from the Organisation for Economic Co-operation and Development (OECD) also found that countries such as Ireland could be “more severely affected” by a hard Brexit.
Elsewhere, continuing, “robust” economic growth is predicted for the EU this year and next, the OECD said, as GDP growth is projected to average slightly above 2 per cent per annum in the region in 2018-19.
“Rising employment should boost incomes and support private consumption, as wages are expected to rise faster than in the past,” the survey said. “High business confidence, increasing corporate profitability and encouraging global demand should keep supporting investment.”
The economic survey, European Union 2018”, published in Brussels said: “After years of crisis, the European economy has robustly expanded in 2017, helped by very accommodative monetary policy, mildly expansionary fiscal policy and a recovering global economy.”
But the report warns that the union must use the opportunity to focus on long term challenges, specifically social and economic inequality – “wellbeing disparities”- the effect of Brexit, low potential growth, an ageing population and continuous technological developments. It says that the overall effect of a hard Brexit is not considered a major macro-economic risk for the EU and is manageable if preparations for all scenarios are made. But countries like Ireland would be more severely affected.
Source: Irish Times