Central Bank urges further pay cuts –


PAY REMAINS high in both the public and private sectors in Ireland and needs to fall further, the Central Bank has said in its latest quarterly bulletin.

It also called on the Government to do more to front-load its budgetary adjustment in order to lessen the uncertainty that has plagued the economy. There should be no “procrastination”, the bank’s economists said yesterday.

In its latest economic forecast, contained in the bulletin, the bank’s economists predicted that gross domestic product would grow by 0.5 per cent, lower than the 0.7 per cent forecast three months ago.

The bank also said that gross national product, which excludes the impact of multinationals on the economy, will shrink by 0.4 per cent, slightly less than the 0.3 per cent contraction predicted in the last quarterly bulletin.

The Central Bank attributed the revision to a “less favourable outlook” for external demand.

“This reflects a more protracted than expected slowdown in virtually all of Ireland’s main trading partners, which seems likely to extend into the first half of 2013,” the report said.

A similar revision was applied to forecasts for next year, with the pick-up in GDP growth expected to reach 1.7 per cent and GNP to expand by a modest 0.7 per cent. That compares with growth of 1.9 per cent and 0.9 per cent respectively in the last bulletin.

The bank said the growth was dependent on some recovery in external demand and stabilisation of the domestic economy.

Although domestic demand is set to shrink further this year, the pace of decline is expected to slow and next year is expected to see a stabilisation. “Consumer demand remains weak, weighed down by declining disposable incomes and a high level of precautionary saving,” the report said.

“However, there are signs of incipient recovery in consumer sentiment which should contribute to a gradual stabilisation in consumption expenditure over the next year, although a further modest decline is projected for 2013 as a whole.”

The decline in investment is also likely to moderate “significantly” in 2012, and may grow next year. The bank said it would be next year before any employment growth starts to emerge.

Repeating a call made previously, the report on the state of the economy said that “without increasing the overall scale of fiscal correction, there is a case for getting the adjustment over more quickly”. “This would shorten the already lengthy period of uncertainty which has been bad in itself and has doubtless slowed investment and other spending plans,” it concluded.

At a briefing yesterday the bank’s economists would not be drawn on how much of the adjustment scheduled for subsequent years should be brought forward to Budget 2013.

The bank also repeated its earlier warnings that the economy had not regained the competitiveness lost during the bubble era. It said pay remained high, adding to costs and prices in the economy, “and no doubt discouraging expansion and investment projects by exporting firms”.

“While the difficulties of addressing some of these issues are acknowledged, a lowering of the cost base, both public and private, would make a significant contribution to improving competitiveness and productivity in a fundamental way,” the report stated.

Siptu reacted angrily to the bank’s call for a further cut in labour costs. “The problem with our economy is not that wages or spending is too high, said union president Jack O’Connor. “It is that consumer demand continues to fall through the floorboards precisely as a result of the pursuit of this nonsensical approach which reflects an ongoing attempt to resolve the problems created by those at the top of society through crucifying people on middle and low incomes.”

via Central Bank urges further pay cuts – The Irish Times – Sat, Oct 06, 2012.

via Central Bank urges further pay cuts – The Irish Times – Sat, Oct 06, 2012.

About Old Boy

Love the past and the future but live in the present

Posted on October 6, 2012, in Uncategorized and tagged , , , , , , , , , . Bookmark the permalink. 1 Comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

90 +Wines in dublin

With a critical score of 90 points+

MovieBabble

The Casual Way to Discuss Movies

OLD HOLLYWOOD IN COLOR

...because it was never black & white

LEANNE COLE

Trying to live a creative life

CURNBLOG

Movies, thoughts, thoughts about movies.

FilmBunker

Saving you from one cinematic disaster at a time.

From 1 Blogger 2 Another

Sharing Great Blog Posts

Wonders in the Dark

Cinema, music, opera, books, television, theater

Just Reviews

Just another WordPress.com site

Mark David Welsh

Feeding Soda Pop to the Thirsty Pigs since 2013

conradbrunstrom

Things I never thunk before.

News from the San Diego Becks

The life and times of Erik, Veronica and Thomas

The Silent Film Quarterly

The Only Magazine Dedicated To Silent Cinema

Leaden Circles

First a warning, musical; then the hour, irrevocable. The leaden circles dissolved in the air.

My Archives

because the internet is not forever

CineSocialUK

Up to the minute, fair, balanced, informed film reviews.

PUZZLED PAGAN PRESENTS

A Shrine to Pop Culture Obsessiveness. With Lots of Spoilers

Thrilling Days of Yesteryear

“Nostalgia isn’t what it used to be” – Peter DeVries

thedullwoodexperiment

Viewing movies in a different light

Twenty Four Frames

Notes on Film by John Greco

Suzanne's Mom's Blog

Arts, Nature, Good Works, Luna & Stella Lockets & Birthstones

It Doesn't Have To Be Right...

... it just has to sound plausible

Rich Green Photography

The life of a photographer who likes to shoot just about anything.

Jordan and Eddie (The Movie Guys)

Australian movie blog - like Margaret and David, just a little younger

Octopus Films

A place for new perspectives on films, TV, media and entertainment.

scifist 2.0

A sci-fi movie history in reviews

The Reviewer's Corner

The Sometimes Serious Corner of the Internet for Anime, Manga, and Comic related things

First Impressions

Notes on Films and Culture

1,001 Movies Reviewed Before You Die

Where I Review One of the 1,001 Movies You Should Watch Before you Die Every Day

Movies Galore of Milwaukee

Movie Galore takes a look at Silent films on up to current in development projects and gives their own opinion on what really does happen in film!

The Catwing Has Landed

A Writer's Blog About Life and Random Things

Gabriel Diego Valdez

Movies and how they change you.

The Horror Incorporated Project

Lurking among the corpses are the body snatchers....plotting their next venture into the graveyard....the blood in your veins will run cold, your spine tingle, as you look into the terror of death in tonight's feature....come along with me into the chamber of horrors, for an excursion through.... Horror Incorporated!

Relatos desde mi ventana

Sentimientos, emociones y reflexiones

Teri again

Finding Me; A site about my life before and after a divorce

unveiled rhythms

Life In Verses

Gareth Roberts

Unorthodox Marketing & Strategy

leeg schrift

Taalarmen

100 Films in a Year

12 months. 100 films. Hopefully.

Morcan Books & Films

The site for a new perspective on books and films

%d bloggers like this: