Awaiting U.S. recovery

The recovery of the U.S. economy will quickly help Ireland out of the doldrums, according to an Irish economist.

Colin Hunt, head of research at Goodbodys Stockbrokers, has offered a detailed commentary on the state of the U.S. economy, suggesting that the country has dodged a recession and is heading for another period of sustained growth.

He warns, however, that after the Enron collapse and the shivers that struck Elan, that investors have lost confidence in companies’ reported profits. The erosion of confidence is serious, Hunt said, and he does not see it returning any time soon.

However, he noted that investors pay less attention to such issues when markets are bullish.

Hunt noted that the U.S. recovery was strong enough to debunk the theory that the economy would suffer a “double dip,” and slump again after this year’s early recovery.