A report from NCB Stockbrokers expects the Irish economy to continue growing over the next 15 years.
The '2020 Vision' report from NCB Stockbrokers expects that the economy in Ireland will continue to grow. This boom is mainly driven by strong population growth and growing immigration.
Our economic boom conditions will remain in place for the next 15 years.
Dermot O Brien, chief economist at NCB Stockbrokers, says the population in Ireland is growing in the economically active age group at a much faster rate than any other country in Europe. This demographic has the most spending power. The report predicts that the population will grow by 30% in the next 15 years. A bigger population equates with bigger economic spending.
By 2020, one fifth of our population will be made up of immigrants.
The report also predicts that the number of cars on Irish roads will double over the same period. To accommodate the growing population, the country will need an additional 65,000 houses per year for the next 10 years.
Not all economists agree that the future looks so optimistic. A second economic report from Friends First warns that any setback to the housing market could have a very negative effect on the economy. Jim Power, chief economist at Friends First, says that policy makers are ignoring the fact that Irish manufacturing and the SME sectors are struggling.
'2020 Vision' raises a number of questions specifically relating to population growth, housing and infrastructure shortfalls.
Where are we going to put the additional 1.3 million people?
How are we going to accommodate an additional 1.4 million cars?
How will our young people ever be able to afford to put a roof over their heads?
An RTÉ News report broadcast on 22 March 2006. The reporter is George Lee.
