Goodbody Stockbrokers upgrades domestic demand figures as investment rebounds
GOODBODY Stockbrokers has upgraded its domestic demand figures to 2.5pc in 2014 and 2.7pc in 2015, up from 1.5pc and 2.2pc previously.
While its GDP growth predictions of 2.6pc in 2014 and 3.1pc in 2015 have been left largely unchanged, the upbeat domestic growth expectations are based on a rebound in investment as the key driver of the economy.
In the fourth quarter, investment, excluding planes, grew by 25pc - the fastest on record albeit off a low base.
The upgrade comes on the day the Government gives its Stability Programme Update where it is expected to stay it is sticking to the €2bn cuts in Budget 2015.
Goodbody says business investment will continue alongside an ongoing recovery in the property market.
Employment growth has also been impressive, it added, with employment expected to grow by 2.5pc in 2014.
And while 2015 austerity measures can be eased, prudence is still required based on the light levels of debt in the Irish economy and the international risks to growth.