IBEC, the group that represents Irish business, today published its latest Quarterly Economic Outlook, which said that the Irish economy will grow again this year, despite the slowdown in activity in our main trading partners, and plant and machinery investment is set to rise by 10%. The Outlook, which contains a section on the economics of the Stability Treaty, also said that there is nothing in the treaty that will require additional austerity in future years and that ratification would boost the country’s growth prospects.
IBEC Chief Economist Fergal O’Brien said: “Following a return to economic growth in 
2011 for the first time in four years, the economy will grow by 1% this year. International trading conditions remain difficult, but exporters continue to benefit from competitiveness improvements and the weaker euro has helped exports to non-eurozone countries. Investment by industry in new equipment and machinery will grow again this year, reflecting the strong export performance of recent years and Ireland’s on going attractiveness to FDI investment. The jobs outlook has also improved somewhat over recent months and the export recovery has meant that job creation has exceeded job losses for the first time since 2007.
“The result of the referendum on 31 May will have a direct impact on the Irish economy. A yes vote is crucial to our future economic prospects. The treaty will provide a better set of rules for the public finances and help ensure that Ireland remains an attractive location for investment. Crucially, from a business perspective, it will make it easier for Irish corporates to raise funding in international debt markets,” said Mr O’Brien.
