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Goodbody Stockbrokers: 'Ireland to grow by 4pc this year but no room for Budget giveaways'

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Cranes dot the Dublin skyline during the construction boom of the Celtic Tiger era.

Cranes dot the Dublin skyline during the construction boom of the Celtic Tiger era.

AFP/Getty Images

Cranes dot the Dublin skyline during the construction boom of the Celtic Tiger era.

GOODBODY Stockbrokers said that Ireland will be the fastest-growing economy in the euro area for the second consecutive year in 2015 with growth of 4pc per annum.

Ireland’s recovery is a real and sustainable one, the broker added, and the deficit will fall below 3pc in 2015, but there are clear spending pressures becoming evident due to public sector pay talks and an upcoming general election.

"It is important that sensible fiscal policy is not abandoned, undoing the hard-won gains of recent years," said chief economist Dermot O'Leary. 

"The recovery is now being led by domestic demand, which is expected to grow by 4.1pc in 2015.

"Investment growth will continue at a stellar pace, with construction taking over as the main driver.

"The Irish consumer recovery has been lacklustre thus far but is also expected to pick up this year on the back of an improving labour market, modest wage increases and a falling tax burden," he added.

Other health warnings include the euro area economy and the domestic political situation given the Government's current standing in the polls.

Online Editors