An International Monetary Fund review on the future of the Irish economy comes with a note of caution.
The International Monetary Fund (IMF) review predicts that the Irish economy will grow by 6.5 per cent this year with consumer prices rising by 1.7 per cent and unemployment falling to 10.3 per cent. The IMF said that Ireland's impressive economic performance was marked by rapid growth in job creation, falling unemployment and low rates of inflation. However, the IMF also sounds a note of caution.
The report warns that if the country continues to develop at the pace that it has done over the past couple of years, that it runs the risk of overheating the economy.
The IMF has urged the government to be vigilant of emerging strain on the housing and labour markets. Economists in Ireland agree with the IMF's advice that the government should curtail public spending.
Economist Philip Halpin believes that it is now the time to curtail some public spending to allow for some flexibility ahead of the introduction of the single currency.
Minister for Finance Charlie McCreevy says that the IMF report shows that prospects for the future of the economy are very good provided the government continues to take the right approach. He said that the report stressed continued moderation in the national wage agreement to prevent inflation and protect employment.
An RTÉ News report broadcast on 26 July 1997. The reporter is Anne Marie Smyth.
