ESRI Predicts Strong Irish Growth In 2006

by Jason Gorringe, Tax-News.com, London

05 October 2006

In its latest Quarterly Economic Commentary, published on Tuesday, Ireland's Economic and Social Research Institute (ESRI) predicted continued strong growth for the Republic this year.

According to the Institute, following a year of robust growth in 2005, 2006 looks set to post an even stronger performance, with GNP forecast to grow by 5.8% and GDP forecast to grow by 5.9%.

In 2007, GNP growth is forecast by ESRI at 4.9% and GDP growth at 5%. The moderation from 2006 is expected partly on the basis of an increasing likelihood of a slowdown in the United States in 2007, which will impact negatively upon Irish exports.

Domestic factors are expected to remain the key drivers of growth in Ireland, with net exports expected to make a negative contribution to growth.

Meanwhile, the Institute suggested that consumption growth is likely to be strong at 6.8% in 2006 and 7.4% in 2007. Investment is also forecast to grow strongly at 8.3% and 6.5% for 2006 and 2007 respectively.

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