Merrion Stockbrokers: No GDP growth in 2013
THE Government will generate more growth over the coming years by easing back on austerity, Merrion Stockbrokers has said in its latest economic update.
Economist Alan McQuaid said it was hard to see positive growth in the economy this year.
But he said Ireland was better placed than most to benefit from the upturn in the world economy when it comes.
“An over-austere budget in October runs the risk of dampening consumer confidence, which will feed through to the property market and in turn result in fewer jobs,” Mr McQuaid said.
“It is clear that Europe’s policy of endless austerity aimed at getting high-debt countries’ budgets back in balance as soon as possible, is not working, and the recent developments on the political front in Portugal suggest that the politicians themselves in the Euroland periphery are losing faith.”
Merrion said it supported the call from business body IBEC for a more lenient approach from Finance Minister Michael Noonan on the budget, particularly on the tax side.