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IBEC’s prediction of domestic growth good news for Retail

Fergal O’Brien : IBEC

The Irish economy will grow faster than previously expected as 50,000 jobs are created and consumer spending improves, business group IBEC said in a new report. See full report: Economic Outlook March 2014

This growth will also be driven by higher consumer spending which is expected to increase by 1.9pc over the next 12 months, great news for retail and the shopping centres we manage.

Key issues highlighted in the forecasts include:
Consumer spending: A boost in consumer sentiment, positive news on retail sales and good employment news will lead to a recovery in consumer spending this year. Ibec forecasts an increase in consumer spending of 1.9% in 2014.

Exports: Last year the pharma cliff wiped almost €5 billion off the value of Irish exports. While the effect of the pharma cliff will continue in 2014, it should ease as the year progresses. Strong growth in key trading partners should see a continued robust performance in services exports and a recovery in goods exports.

Employment: Positive sentiment for employment growth now exists in both exporters and those companies operating in the domestic economy, which points to the positive jobs trends in 2013 continuing in 2014.