Recovery Irish economy exceeds expectations

06-21-2010 15:26

The recovery of the Irish economy in the first six months of 2010 has exceeded economists’ forecasts, according to a report by Bloxham Stockbrokers. The independent stockbroker stated that the Irish economy has found its path out of recession. However, the situation remains difficult for the Irish economy.

GDP growth

Bloxham Stockbrokers presumes that the EU debt crisis doesn’t affect other EU countries. In that scenario, the Irish economy is expected to recover strongly in the next 12 months. Strong exports should drive this recovery. The stockbroker forecasts a 0.5% GDP growth. In March, Bloxham predicted a 0.75% shrink. Bloxham also forecasts a 3.5% increase next year and 4% in 2012.

Irish building sector

The devaluation of the Common European Currency favors Irish exporters. Ireland profits more than other euro area nations from a weak Euro versus the Greenback and Pound. The stockbroker forecasts that the Greenback and Pound continue to rise this year. Bloxham stated that especially a strong Sterling will spur Irish exports. Today’s report shows that exports will boost the economic improvement. It is expected that the building sector will continue to struggle in the short term. The stockbroker forecasts that the building sector delivers 10.000 – 15.000 houses in 2010 and in 2011. During the construction bust in 2006, Ireland delivered 93.000 houses.

Bloxham Stockbrokers

Bloxham expects higher consumer spending in 2010, primarily boosted by Irish citizens without a mortgage and with very little debt. However, they emphasized that people can boost spending only to a certain extent. The stockbroker stated that it’s crucial that the banking sector resumes its usual lending activities very soon now.

Recovery Irish economy

They also underlined that the job market is the last obstacle for the Irish economy. Bloxham predicts that the labor market needs at least until the end of 2010 to recover substantially. Bloxham stated that the government should follow the example of other euro area countries. They should think about selling off state assets in order to meet its funding needs and to finance more comprehensive economic projects.