Economic growth will take time to filter down to households - report

on 15/03/2013 07:44:01

We will all continue to feel the pinch of harsh budgets for the next few years despite economic growth in 2014, according to a new economic forecast.

According to the latest Eurozone Forecast Report by Ernst and Young, the property market will also remain sluggish and consumer spending is expected to remain low.

The economy is expected to start growing again from mid-2013, but overall a decline of 0.5% is still forecast for 2013, followed by very sluggish growth of only 1.4% a year in 2014-17.

Senior economic advisor to the report Tom Rodgers said it would be some time before we can reap the benefits of the predicted growth.

"We should see Ireland start to benefit more and more from the recovery in trade around the eurozone," he said, "and particularly (due to) the reforms that Ireland has made, the falling costs and improvements in competitiveness and the attractiveness that has for companies setting up in Ireland."