House prices to fall further 10% from peak
House prices could fall a further 10% from their peak in the property boom of the first half of this decade, the report predicted. “House price declines in Ireland are not over,” says the report.
Domestic economy stagnant
On consumer spending the report identifies those aged 20-45 as least likely to spend further. This is partly due to rising numbers of people in that age group leaving the country, also to the fact that they were a large proportion of those who took out big mortgages just before the property crash.
National debt forecast to reach 113% of GDP by 2013
Projections for Irish gross debt remain staggering, with the report forecasting it will rise to 113% of GDP by 2013.