The Central Bank of Ireland raised its forecast Friday and bucked a trend. They are predicting growth this year by 0.8 per cent as companies boost their exports out of the country.
The bank also warned that the Ireland economy remains weak, with consumer spending and average prices both falling another 1.2 per cent this year.
Ever since 2008, the Ireland government has been cutting spending and raising taxes in an effort to get control of its out of control deficit.
Friday’s Quarterly report contained sobering figures.
Although, with unemployment at 13.5 per cent at year end, a 16 year high, and GNP sliding another per cent before rebounding 2.2 per cent in 2011, Ireland remains optimistic.
The key to the growth outlook is exports, particularly software and pharmaceuticals to the US.
The report out Friday also mentioned resumed emigration was moderating Ireland’s unemployment rate. The report said the size of the labor force would decline 2.1 per cent this year and an additional 0.6 per cent in 2011.