NCB Stockbrokers economist Dermot O'Brien has said the Irish economy should continue to growth by around 5% a year for the rest of the decade, helped by what he called its unique demographics and economic structure.
The economist also told the Irish Association of Pension Funds investment conference in Dublin that house price growth should slow to 5-6% this year. But he saw 'no likelihood' of a property crash, even if interest rates were to increase by a couple of percentage points, arguing that average repayments as a percentage of income would rise only to 34-35% in such a case.
Mr O'Brien said Ireland's economic performance was being underpinned by continued growth in population.
He also said the Irish economy was not as vulnerable to external influences as was commonly believed, pointing out that employment in the multinational technology and pharmaceutical sectors accounted for only about 100,000 jobs out of a total workforce of 1.9 million.
The economist added that multinationals imported most of their raw materials, meaning that 'their interactions with and impact on the rest of the economy were small'.
Speaking at the same conference, Derek McNamee of Heissmann Consultants said we should not get hung up on a 70% national target for pensions coverage.
'The current demographics of the Irish market are such that there are many people at a young age and mobility who will not be interested in pensions contributions no matter what incentives are offered,' he said.
