Date Released: 10 January 2013
Budget 2013 will result in a further contraction of the Irish economy and more job losses according to the key findings of the latest Quarterly Economic Observer (QEO) published by the Nevin Economic Research Institute (NERI).
The QEO, published on Wednesday (9th January) outlines NERI’s expectations for the Republic of Ireland's economy for the next three years. These include; annual GDP growth of less than 1% per annum for the next two years and 1.8% in 2015; a further contraction of the domestic economy following Budget 2013; and a further increase in unemployment in 2013 and 2014.
NERI Senior Research Officer, Micheál Collins, said: “Our projections are pessimistic, highlighting an ongoing economic stagnation as a result of continued contractions to domestic demand, sustained uncertainty at a European level and a related slow recovery of the international economy.”
He added: “Given this, the prospect of higher budgetary deficits, larger numbers unemployed, further austerity measures and the contracting domestic economy leads us to question the Government's capacity to reach its fiscal targets in 2015 and to limit the increase in the national debt without significant changes in policy approach as well as improvement in international conditions.”
The QEO also focuses on the nature of Ireland's income distribution finding that 56% of households have a gross income of less than €50,000.
To read the Quarterly Economic Observer click here