Ireland left behind by the recession and will grow more than expected

The Irish economy has left behind the recession and is recovering at a pace faster than expected by experts earlier this year, according to a report issued today by the financial firm Bloxham Stockbrokers.

However, the study warns that the growth prospects of the economy of the Republic of Ireland for the next twelve months depend in large part on the evolution of the crisis in the euro area.

"If the debt problems in the eurozone will not become a large-scale crisis, Ireland should return to the top of the table of growth of Gross Domestic Product (GDP), driven mainly by strong exports" says the study.
In this context, means Bloxham, the national economy during 2010 will grow 0.5 percent, compared to 0.75 percent contraction expected last March, while in 2011 and 2012 come to 3.5 and 4 percent, respectively.

Irish exports are being benefited, said the signing by the devaluation of the euro against the dollar and the British pound, a situation that continue to do so in the coming months.

Compared with other countries in the euro area, Ireland has traditionally had a greater market penetration of the neighboring United Kingdom and the United States.
In contrast, the construction sector, one of the engines of national economy during the years of the Celtic Tiger, now remain a drag on recovery.

For example, says the firm, during 2010 and 2011 between 10,000 and 15,000 completed real estate projects, a figure that contrasts with the 93 000 that were undertaken in 2006, when it reached the top of the boom in construction.
A brick crisis is joined by the banking sector, whose lack of credibility in international markets requires to impose "normal lending practices" as soon as possible, stresses Bloxham Stockbrokers.

With all these pieces in order, the study predicts, the Irish labor market, beset by an unemployment rate of 13.2 percent, could be showing signs of recovery later this year