IRELAND STILL HAS ADVANTAGES, SAYS ECONOMIST - Despite suffering badly in this downturn, Ireland is well-placed to emerge successfully from the recession and be the envy of nearby countries. This is according to Neil Gibson of Oxford Economics, who is an advisor to Ernst & Young's Economic Eye report.
He said there were three big problems which had hit the Irish economy: the slowdown in global demand, which had hit exports; problems in the domestic market, particularly due to the building slump; and the squeeze on the public sector.
But Mr Gibson said the Irish education system was strong, and the country had a good track record in attracting big companies from important sectors such as service-sector exporting companies and high-level pharmaceutical companies.
He said an international reputation for being business-friendly was crucial, and this - along with the skills available in Ireland - were difficult for other competitor countries to replace.
Mr Gibson mentioned pharmaceutical, biotechnology and professional services companies as strong prospects for growth.
He said there were a number of risks to this optimistic scenario - such as a rise in oil prices, and the danger that the Government would impose too many taxes in order to balance the public finances.
The economist said the real pain of recession was being felt by those losing their jobs - and for many of these people, the recession could last for a generation. He said the Government and businesses needed to be sensitive to these personal and emotional costs.
He said the most difficult message he had to deliver to firms was that there would not be a return to the type of growth we saw in the last five years.
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NEWS AND CURRENCIES - The price of a barrel of oil fell below $73 a barrel overnight, reversing an earlier surge to a seven-week high, as optimism over the pace of demand recovery in the US, the world's top energy consumer, faded after mixed economic data.
On the currency markets the euro is trading at $1.4225 and 86.5p sterling.
