Ireland is successfully emerging from its post-crisis adjustment programme. Economic activity is showing signs of revival and is projected to gradually strengthen in 2014-15. Growth will continue to be led by exports, with private consumption making a rising contribution. Business investment is also projected to expand, reflecting Ireland’s attractiveness for foreign direct investment. The unemployment rate will continue to decline, aided by the broadening of the recovery to more labourintensive sectors.
Adherence to the fiscal targets should be maintained to bring the public debt onto a declining path, although automatic stabilisers should be allowed to work around the structural consolidation path if growth disappoints. Further efforts are also needed to restore the banking system to health and repair the bank credit channel. Getting long-term job seekers back to work should be prioritised to reduce the risk of high unemployment becoming structural. In particular, workers previously employed in the construction sector should be encouraged to acquire the skills and competencies demanded by jobcreating sectors.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.
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