| 1.8°C Dublin

Optimism grows on prospects for a quick recovery

IRISH people believe the global economy will worsen next year but they still rank among the most optimistic on near-term growth, according to a Barclays Wealth survey.

The report shows a significant difference in opinion on wealth creation opportunities in the next five years with some countries being significantly more optimistic than others.

Countries which have been identified as most at risk in Europe's debt crisis have emerged as some of the most optimistic in terms of future economic growth.

Respondents in Ireland are confident of global recovery, with 26pc expecting economic growth over the next few years.

Spain is even further ahead in the optimism stakes with 40pc expecting growth in the same period. By contrast, in the rest of Europe, less than 1 in 5 (19pc) expect global growth in the years ahead.

The largest economy in the world, the US, is among the most pessimistic about its economic future with just 13pc forecasting growth in the global economy in the short to medium term.

Internationally, respondents in the Gulf Cooperation Council (Kuwait, Bahrain, Saudi Arabia, Qatar, UAE and Oman) are particularly confident of a global recovery, with almost one in three (33pc) expecting the economy to grow over the next few years.

"There is a big difference of opinion on what the next decade will bring for the global economy," said Pat McCormack, head of Barclays Wealth Ireland.

"The global outlook of wealthy individuals is heavily tainted by experiences in their local markets. Wealthy individuals are notably more pessimistic than the majority of professional economists.

"Barclays Wealth shares this cautious outlook, as we judge that the high -- and rising -- burden of public debts may make it increasingly difficult for policymakers to keep the recovery on the road.

The report also noted a fall in wealthy investors' satisfaction with the Government.

Some 80pc of those surveyed here said they trusted the Government less than before the downturn, while 50pc "completely disagree" that the Government handled the downturn well.

"There is a large level of doubt about private equity among Irish investors over the next 12 months," Mr McCormack said.