BoI Says Irish Economy 'Dynamic'

by Jason Gorringe, Tax-News.com, London

30 April 2002

Speaking at a New Ireland Broker Investment Conference recently, the Bank of Ireland's Senior Economist, Dr Dan McLaughlin gave an upbeat prediction for the future of the Irish economy.

According to a report in the Irish Independent on Monday, Dr McLaughlin estimated that the economy would grow by an average of 5% this year and by 6-7% in 2003, explaining that the fundamental strengths which caused the country to be dubbed the 'Celtic Tiger' are still in evidence, and that Ireland remains the most dynamic of all eurozone economies.

This upbeat prediction is in stark contrast with announcements made recently by the OECD, and organisations such as the Economic and Social Research Institute (ESRI), and the Irish Business and Employers Federation (IBEC), which have warned that current spending levels are 'a recipe for disaster'.

The OECD was less optimistic than the Bank of Ireland in its economic forecast. It estimated that growth of 3-4% this year is likely, and chastised the Irish government:

'For an economy experiencing a temporary downturn, the shift in fiscal stance from sizeable structural surplus to small deficit has been inappropriately large and suggests weakness in the budgetary system,' the Organisation for Economic Cooperation and Development said in its recent economic outlook.

Recommended