Ireland in need of significant investment, says NERI

10th April 2013 | News

The Nevin Economic Research Institute (NERI) has concluded that Ireland requires an enhanced level of investment in order to encourage growth within its domestic economy.
NERI, the think-tank which focuses on the social and economic conditions affecting Ireland, and is supported by a number of unions affiliated with the Congress of Trade Unions, predicts low growth and significant unemployment over the next three years.
Within its latest quarterly Economic Observer, the think-tank believes GDP growth will be at a low of between1 and 1.2 per cent over the next two years, increasing to 2 per cent in 2015.
In addition, an increase in the numbers of unemployed in Ireland has been forecast for the coming year, with employment levels expected to level out in 2014 and 2015.
An extension to the country’s loan period would ease the continued burden, although NERI has warned that the Government would be required to counteract tough budget measures currently planned for the next two years.
The general Government deficit in the Republic of Ireland is likely to fall 7.1 per cent in 2013, while overall Government debt is expected to peak at approximately 121.1 per cent of GDP.
Within NERI’s latest Economic Observer its primary analytical and policy focus is on youth unemployment in Northern Ireland. Young people have been adversely affected by the recession and the numbers of unemployed continue to rise to concerning levels.
The report examines policy responses, including a potential Youth Guarantee scheme, designed to provide relevant training and work experience for young people and fresh employment opportunities to reduce structural youth unemployment in the long term.