The unleashing of €13 billion in household savings and significant pent-up demand will lead to a surge in consumer spending that will fuel a 5% growth in core domestic demand this year, new research from stockbroker Goodbody says.
In his latest economic forecast, chief economist Dermot O'Leary predicts that domestic demand will fall between January and March.
But he said a recovery will begin as the Covid-19 vaccine rollout leads to the easing of restrictions, probably sometime in the second quarter.
Today's report anticipates that this strong recovery will moderate a little next year, growing 3.5% in 2022. "Due to significant government transfers, disposable incomes have held up well.