Irish move away from austerity was too early, advises OECD

Ireland has 'prematurely' shifted away from austerity to stimulus, the Organisation for Economic Cooperation and Development (OECD) has stated. The organisation said further reforms were needed to boost competition and make it easier to form and maintain a successful company. It added that any extra revenue in the state funds should be used to help combat debt.

Irish move away from austerity was too early, advises OECD

Ireland has 'prematurely' shifted away from austerity to stimulus, the Organisation for Economic Cooperation and Development (OECD) has stated. The organisation said further reforms were needed to boost competition and make it easier to form and maintain a successful company. It added that any extra revenue in the state funds should be used to help combat debt.

"If government surplus is higher than expected, this should be put towards reducing still high public debt more rapidly," the OECD said in its latest economic outlook report. It came as the state's fiscal office warned that Budget 2015 had been a missed opportunity to further repair the public finances.

The OECD said that a "vigorous and broad-based recovery was under way here", with spending, investment and exports all expanding. Growth in key trading partners such as the US and UK, as well as rising house prices, tourism and consumer confidence, were helping to boost employment, incomes and spending, it said. While it noted unemployment was falling, it warned that the share of the long-term unemployed remained large and about 40% of those were "poorly educated and skilled".
It warned that trading partner growth, especially in the Eurozone, may turn out to be lower than expected. "High public and private debt make Ireland still very vulnerable to unexpected shocks," it said.

The OECD also noted that falling unemployment would raise price and wage inflation. It has been estimated that the global economy would gradually improve over the next two years but Japan would grow less than previously expected while most of Europe struggled with unproductivity and an increased deflation risk.


Cyprus:
+357 25 02 50 34
Singapore:
+65 62 47 71 92
Russia:
+7 812 458 46 22
Skype:
eltoma.0015