Ireland’s 2012 GDP Growth Estimate Cut to 0.4% by Davy

Ireland’s economy will probably grow 0.4 percent this year, Dublin-based securities firm Davy said today, cutting its growth estimate from 1.7 percent.

Ireland will probably miss budget deficit targets under its international bailout in 2012 and 2013, Davy said in an e-mailed report, citing slower export growth. The euro area is expected to be in recession this year, and may have contracted in the final quarter of 2011, according to the securities company.

“With the debt level approaching the limits of sustainability, policy efforts to reduce the cost of recapitalizing Ireland’s banks are appropriate,” Davy Chief Economist Conall Mac Coille said in the report.

Ireland’s gross domestic product will probably grow by 1.6 percent in 2013, Davy said. Export growth will probably slow to 2.8 percent this year from 4.5 percent in 2011.

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