'We'll fail to hit Budget targets'
IRELAND will fail to hit its Budget deficit targets this year and again in 2012, stockbrokers Davy predict.
The firm anticipates little growth in the Irish economy this year, and Davy chief economist Conall MacCoille said projections for GDP growth are materially weaker than those of the Department of Finance, EU Commission or the IMF.
The company has slashed its own GDP growth projections for this year to 0.4pc, well below the Government's forecast of 1pc growth this year.
"Our reduced forecast for GDP growth implies weaker tax revenues and greater expenditures, such as higher social welfare payments," Mr MacCoille said.
"Hence, we expect the general Government deficit to equal 9pc of GDP in 2012 and 8pc in 2013.
And Davy has a poorer outlook for general government debt - expecting the debt to GDP ratio to rise to 121.9pc of nominal GDP in 2013, above the 119pc expected in Budget 2012.