Slowdown in export growth predicted
IRELAND has made good progress under the bailout but faces a new challenge as export markets weaken significantly, according to a new international report.
Export growth will slow next year according to a report from the Organisation for Economic Cooperation and Development (OECD). The OECD monitors the economies of rich countries.
It said this country was set to suffer because of a "worldwide loss of confidence" and slower growing world trade.
It expects exports from Ireland to increase by 3.3pc in 2012 compared to 4.2pc in 2011.
Exports would remain the only hope of a return to growth because domestic demand would continue to fall over the period, they said.
The latest report on the Irish economy was published yesterday as part of the Paris-based OECD's damning report into economic activity in the eurozone. The report said the debt crisiscould plunge the whole world into crisis.
In its summary for Ireland, the OECD said this country had made good progress in addressing the crisis but warned that the best to hope for was a slow and gradual recovery.
A slowdown in exports, combined with the tough Budget next month, meant there would be only modest growth in 2012. A gradual economic upturn was expected in 2013, it said.
It means unemployment is not expected to start falling until 2013 and by then the national debt will hit 122pc of the size of the economy - compared to 71pc as recently as 2009, the report said.