OECD Economic survey of Ireland 2008


While facing serious challenges - especially from the property downturn - the Irish economy is well placed to maintain strong growth, the OECD's Economic Survey of Ireland has stated.

'Strong economic activity has been maintained and economic fundamentals remain sound' - it said. The end of the long housing expansion will, however, slow growth and presents more difficult challenges than in recent years, it added.

In the short-run, the economy must adjust to lower housing activity and the risks the slowdown creates. 'In the long-term, maintaining high rates of productivity growth is the key challenge. It is important that Ireland remains internationally competitive' - the OECD assessment reported.

Policy can support productivity growth through achieving stronger competition, improved infrastructure, more innovation, increased human capital and higher labour market participation. Ireland should ensure the stability and sustainability of its economic and social gains.

A more efficient housing market would contribute to greater stability and the recent international financial market turmoil highlights the need to continue to prepare for financial upsets.

The assessment added that maintaining a prudent fiscal policy as revenue growth slows will help to promote stability - although this will require more effort to improve efficiency if services are to be improved. With regard to the pension system, ageing will eventually pose significant challenges that can be reduced if preparatory action is taken now.

Successful long-term integration will help to ensure that immigration is a success, the OECD report said.

For more information - Click Here