Date Released: 26 June 2013
Among the key points are; A recovery of growth in output and in total employment is likely to be very slow in both economies of Ireland over the coming two years. Economic activity remains depressed in some of the key trading partners and continuing fiscal austerity coupled with high levels of private debt are taking their toll on domestic demand. While there are some positive signals, with regards to service exports in the Republic of Ireland as well as a reduction in unemployment since early 2012, the overall outlook remains very challenging. This will continue to weigh on public finances where Government ambitions to reach the deficit target of 3% by 2015 very much depend on a range of circumstances not all of which are under full domestic policy control.
This Observer focusses on the option of pursuing a growth-friendly and jobs-rich approach to budgetary policy in the Republic of Ireland over the next two years. The approach has three main components:
Compared to the current trajectory of public policy and fiscal adjustment, and on the basis of an expected slow economic recovery in Ireland’s main trading partners, an alternative budgetary approach such as outlined in this Observer is very likely to:
A full copy of the report is available at http://www.nerinstitute.net/download/pdf/neri_qeosummer13.pdf?issuusl=ignore