Goodbody’s cuts economic forecast as consumers continue to rein in spending
GOODBODY Stockbrokers cut its Irish economic growth forecasts this morning as consumers continue to rein in spending.
The country’s second largest stock broker said gross domestic product will only increase 0.3pc this year and 1.3pc in 2013, a cut of about 0.5 percentage points in its earlier forecast.
The broker’s first downgrade this year highlights the “fragile” nature of the economic recovery, Goodbody said.
Domestic demand is “particularly disappointing” and explains this year’s downgrade, the broker’s report added.
Next year’s downgrade can be explained by a combination of lower export growth and lower consumption. The Government is likely to follow suit with its own downgrades when it publishes official forecasts in October, Goodbody added.