Clear signs of deficit reduction and economic growth could see Ireland move ahead of more troubled economies such as Portugal and Greece.
Giving an overview of the Irish economy at a recent event in New York hosted by BNY Mellon, Desmond Mac Intyre, chairman and chief executive officer of Standish Mellon Asset Management, said the reduction in the deficit to below 10% and the estimated expansion of its economy by 0.9% in 2011 - the first since 2007 - gave good reason for optimism.
“Standish expects this growth to continue into 2012, with medium to high expectations ranging from between negative 0.1 percent to positive one percent,” he said. “While the country is clearly not yet firing on all cylinders, there is likely to be growth nonetheless,” said Mac Intyre.
Other positive signs include exports rising above previous peaks, a savings rate of approximately eight percent, and the success by government and business leaders to encourage foreign direct investment, he said. Mac Intyre added, “Standish views foreign direct investment as a key building block behind Ireland’s success, its quest for job generation, and its export-led recovery.”
While Mac Intyre noted that unemployment remains too high and further reductions are necessary in the budget deficit, he said Standish was optimistic that Ireland will overcome these challenges. He added, “It is our view that the Irish economy has the ability to grow out of recession.”
Standish Mellon Asset Management is the fixed income specialist for BNY Mellon Asset Management.
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