Finance Minister Charlie McCreevy told the Dail last night that the main effects of the US attacks on the Irish economy would be felt next year. He also reiterated that lower tax receipts would reduce his room for manoeuvre on the budgetary front.
The Minister said it was difficult to assess the full economic impact of the attacks, but they would reduce economic activity globally and in Ireland, and would add to economic uncertainty.
He said Ireland had already been affected by a downturn in the US, with the latest tax figures showing that the Irish economy was slowing.
Mr McCreevy said exports to the US would be hit, while any significant falls in the dollar and sterling would make Irish exports less competitive. He added that the events of September 11 would also further reduce and delay investment by US companies.
The Minister said lower growth, along with falls in interest rates and oil prices would have a dampening effect on inflation.
