PARIS (MNI) – Ireland’s central bank maintained its growth
forecasts for the domestic economy of 0.5% for 2012 and 2.1% for 2013,
but said it sees “signs of limited improvement” in the global economy.
The central bank said in its quarterly bulletin released Thursday
that the growth slowdown in the euro area in the second half of last
year did not appear to have intensified and that growth in the United
States might turn out to be stronger than expected.
For Ireland’s economy, the “narrative behind the data has not
changed, however, with the positive impulse to growth coming exclusively
from the external side and being largely offset by a continuing drag on
demand from domestic sources,” the central bank said.
Despite the slow pace of growth, the Irish government’s budget
deficit target of 8.6% of GDP remains within reach and no further fiscal
tightening appears necessary, the central bank said.
Among other economic projections, the central bank expects personal
consumption spending to decline by 1.5% this year before recovering
moderately with a gain of 0.2% next year. Exports are expected to rise
by 3.6% this year and 4.7% in 2013, the central bank said.
–Paris newsroom, +33142715549; jduffy@marketnews.com
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