Cowen Comments On Central Bank Quarterly Bulletin

by Amanda Banks, for LawAndTax-News.com, London

10 April 2008

Brian Cowen, Ireland's Minister for Finance, commented last week on the Central Bank's Quarterly Bulletin.

Mr Cowen observed that:

"The reduction in the Central Bank economic growth forecast is a response primarily to the global liquidity crisis, a challenge for every country in the developed world. However, our growth rate this year is expected to be higher than almost all of our fellow EU members. Employment will continue to grow and we will continue to build on the success of recent years."

"The Central Bank sees economic activity moving back towards a more optimum growth trend in 2009. By following the right policies now, by holding our nerve, we will come through the current situation with our economic fundamentals intact," Cowen added, going on to state that:

"We are clearly in a somewhat more difficult economic environment. However, one of the great strengths of our economy is its ability to adapt and to respond to changing conditions. The limited fall-out from the global ICT shock in the early part of this decade is testament to this resilience."

"We will continue with our ambitious investment programme, the National Development Plan 2007 – 2013, which will transform this economy. Infrastructural investment under the Plan will help to eliminate bottlenecks and foster an improvement in our competitiveness. By continuing to invest now, we will ensure that the Irish economy is well equipped to benefit from an improving world economic environment," he assured.

The Finance Minister continued:

"By keeping the NDP on track, the Government is giving strong support to domestic activity at a time of global uncertainty."

"We can best respond to the deterioration in international economic conditions by raising our productivity and by being realistic in our pay expectations."

"Our economy's fundamentals remain healthy and I am confident that we will emerge from the current situation in a strong position. The Central Bank, along with other forecasters, is expecting improved economic growth next year," he concluded.

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