Irish Republic's Economy 'To Grow 1%'

A forecast from Dublin's Central Bank has predicted that the Irish economy will grow at 1% this year.

The State's economic advisors have revised and increased their figures to levels first suggested at the start of the year following fears of double-dip recession earlier in the summer.

Growth in the first half of the year was so strong that emerging evidence of a slowdown in the international economy in the second half will not tip the Irish economy back into negative territory.

However, the bank has revised its growth estimate for next year downwards by a 0.25% to reflect much weaker demand in Ireland's main trading partners in 2012.

It has also been suggested that the value of Irish-owned business will fall again.

The Central Bank claim that unemployment crisis will peak this year at 14.2% before edging back slightly to 14% by the end of next year.

Meanwhile the report said the precise economic out turn for 2011 will determine how much money the Government cuts and saves in Budget 2012.

Speculation has centered on a savings figure anywhere from €3-4bn.

Amidst this Social Justice Ireland (SJI) has published an alternative budget for Ireland’s Government cuts.

They believe their alternative will save the Government €3.6bn, without damaging the poor and vulnerable.

SJI wants to increase the tax take by €2 for every €1 cut from public services.

It also wants a programme to create 100,000 part-time jobs for the long-term unemployed, an increase in all social welfare rates, and a levy of 2.5% on corporate profits.

SJI said that the plan is fully costed and it has warned the Government that any other type of budget in December will likely provide short-term gain but long- term pain.

(LB/BMcC)