The latest report from the Central Bank says the Irish economy is likely to start growing again in the second half of 2010, but only at a ‘modest’ pace.
Its quarterly bulletin warns, however, that lower incomes and increased unemployment are likely to continue to hold back consumer spending.
It says there are signs that the economy is stabilising, but it warns that it will be 2011 before growth is strong enough to start bringing unemployment down.
It also says the timing and strength of a recovery very much depends on the performance of the worldwide economy, which will influence demand for Irish exports.
The Central Bank praises the Government’s measures taken so far to deal with the public finances, but warns that any ‘slippage’ from these would damage confidence.
It also urges the Government to give greater detail on how it plans to cut the budget deficit over the next few years.
The report refers to concerns about home owners struggling to pay their mortgages, saying any measures to help them should not
