THE economy is set for another good year with further strong growth in exports and continuing low interest rates sustaining the current boom, according to Goodbody Stockbrokers.
In its latest economic report, the brokers have taken a more optimistic view than other forecasters, predicting GNP growth of 6 per cent this year.
On the back of accelerating growth in Europe and in the British economy over the next 12 months, Goodbody believes export markets will remain buoyant. Exports to the UK in particular should grow strongly, helped by the sharp weakening of sterling against the pound in recent months.
The maintenance of a stable, low interest rate, environment will also support growth in consumer spending, housebuilding and capital investment in the commercial and industrial sectors, according to the brokers.
The growing number of major international investments in the Irish economy will also underpin further economic growth, it says. The number of prestigious. projects announced in 1996 will boost overall economic activity in 1997 as new operations come on stream.
The reports adds that recent indicators, such as private sector credit growth data, car sales and new housing registrations, show no signs that the economy is slowing down.
Despite strong growth in domestic credit and increased Government spending, the brokers say there are no signs of any pick-up in inflation. Wage pressures have remained subdued and the recently-concluded national pay deal should ensure a continuation of pay restraint.
