Belfast Telegraph

Republic's economy set for fastest growth in EU

The European Commission (EC) has lifted its forecast for Irish economic growth this year despite uncertainty over Brexit. (Niall Carson/PA)
The European Commission (EC) has lifted its forecast for Irish economic growth this year despite uncertainty over Brexit. (Niall Carson/PA)

By John Mulligan

The European Commission (EC) has lifted its forecast for Irish economic growth this year despite uncertainty over Brexit.

However, the organisation cut its wider euro-area outlook amid fears over trade tensions and the UK's withdrawal from the EU.

The EC said Ireland's gross domestic product would rise by 5.6% this year, compared to previous estimates of 4%.

The numbers suggest Ireland will have the fastest pace of expansion in the EU this year.

Growth in the Republic is expected to slow to 3.5% in 2020 and to 3.2% in 2021.

Ireland's Department of Finance previously forecast growth of 5.5% for this year and 0.7% for next year.

However, the EC warned that a messy Brexit could make things much worse.

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Valdis Dombrovskis, commission vice-president for the euro and social dialogue, said the European economy had shown resilience in the face of difficult conditions.

He stressed that job creation was robust, with domestic demand also strong.

Belfast Telegraph

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