Bloomberg News

Irish Economy May Fail to Gather Strength in 2012, Troika Says

October 20, 2011

Oct. 20 (Bloomberg) -- Ireland’s economy may fail to gather strength next year as a global slowdown hurts exports and consumers hold back spending, the latest report by the country’s bailout partners showed.

“Growth in the first half of 2011 was stronger than expected,” the so-called troika of officials from the European Central Bank, the European Commission and the International Monetary Fund said in an e-mailed report today. “But the slowdown in key trading partners is likely to cool Ireland’s export growth,” while “domestic demand is expected to contract slightly faster than was projected” previously. “These factors will dampen the economic recovery with real GDP growth rate expected to be about 1 percent in both 2011 and 2012.”

Ireland’s implementation of its bailout program “continues to be strong” and the government is expected to meet its budget deficit target for this year of 10.5 percent, according to the statement.

To contact the reporter on this story: Finbarr Flynn in Dublin at fflynn3@bloomberg.net

To contact the editor responsible for this story: Simone Meier at smeier@bloomberg.net


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