The world economy has yet to emerge from the downturn of the past three years, with growth likely to come in at 1pc, according to Davy Stockbrokers In a research note today, the brokers said, "After showing promising signs of recovery in the early months of the year the global economy slowed appreciably again in the late summer and early autumn."
"As we enter the final months of the year most of the major economic blocs are growing at annual rates of not much more than 1pc," it added. Davy blamed financial imbalances as the principal cause of this slowdown and the main constraint on growth going forward. "Inevitably the consequences of this slowdown have worked their way through to most of the major economic indicators in the Irish economy, and we think it likely that GNP growth will come in at around 1pc in the current year," the report stated "Given the extent, depth and length of the global economic correction that has occurred, an economy as open as Ireland will do well to manage any significant growth at all, particularly as it has come off a period of such rapid growth during the bulk of the past decade," it added //www.fxcentre.com