Irish Central Bank Boosts Growth Forecasts on Faster Job Gains

--Ireland GDP Now Seen Expanding by 4.5% in 2017, 3.6% in 2018 

By Jack Duffy

     PARIS (MNI) - Ireland's economy will expand at a faster-than-expected pace

this year and next as employment growth reaches its highest level in a decade,

the Central Bank of Ireland said Friday.

     It is Quarterly Bulletin for the third quarter, the central bank forecast

that Ireland's GDP will grow by 4.5% this year and 3.6% in 2018, up from

previous estimates of 3.5% and 3.2%, respectively. 

     With 2.1 million people expected to be working next year, Irish

unemployment is set to plunge to 5.6%, boosting incomes and consumer spending,

the central bank said. 

     "The Irish economy continues to grow at a strong pace and the prospects for

sustained and solid economic growth remain positive," Chief Economist Gabriel

Fagan said.

     Faster growth forecasts "reflect both stronger momentum in the domestic

economy and improved prospects for external demand, especially from our European

trading partners," Fagan said. 

     Fagan said the main risks to the economy were external, with Brexit topping

the list. 

     "It is clear that the economic impact of Brexit on Ireland is set to be

negative and material," Fagan said, but he added there was little new

information to affect forecasts.

     Inflation is set to remain weak in Ireland, partially reflecting the euro's

strength against the pound. The central bank forecast that HICP inflation will

rise by only 0.3% this year and 1.0% next year. Excluding energy, prices are

expected to be flat this year and to rise by 1.0% in 2018, the central bank

said. 

--MNI Paris Bureau; tel: +33 1-42-71-55-41; email: jack.duffy@marketnews.com

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