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"Ireland is the 'comeback kid' of Europe" - OECD praises Ireland for broad, robust recovery

The Taoiseach Enda Kenny has said that government are not going to blow the Irish economic recove...
Newstalk
Newstalk

11.27 15 Sep 2015


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"Ireland is the &#...

"Ireland is the 'comeback kid' of Europe" - OECD praises Ireland for broad, robust recovery

Newstalk
Newstalk

11.27 15 Sep 2015


Share this article


The Taoiseach Enda Kenny has said that government are not going to blow the Irish economic recovery.

It comes as the OECD says there is a broad-based and robust recovery underway in Ireland, but there are still risks to the economy.

It says rising property prices pose a risk and has recommended that home buyer subsidies need to be avoided.

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It is warning the budget deficit remains too large and that efficiency needs to improve in health spending.

The OECD also says more supports should be provided for disadvantaged schools - saying that in Ireland, a person's level of education is still tied to their social background.

The survey was presented in Dublin today by OECD Secretary-General Angel Gurría and Finance Minister Michael Noonan.

It projects Irish GDP will grow by 5% in 2015 and 4% in 2016, and that the Irish economy is on "a sounder footing than before the crisis".

"Unemployment is falling, the fiscal deficit continues to narrow, public debt is on a downward path, the banking sector has been restructured and recapitalised and the public administration has become more efficient" it adds.

"Ireland is the 'comeback kid' of Europe's crisis-hit economies, and much of the credit for this strong recovery goes to the government's steadfast commitment to reform," Mr Gurría said.

"To avoid repeating past mistakes, now is the time to build resilience against future nasty surprises while ensuring the recovery is sustained, and its benefits broadly shared," he added.

The OECD says to make growth more inclusive, Ireland's top priority should be further reducing the still-high levels of post-crisis unemployment - particularly for youth and the long-term unemployed.

It adds that the government should continue with plans to improve the apprenticeship system and other forms of training.

"Remaining unemployment traps should be eased, for instance by slowing the withdrawal of housing and family income supplements as income increases", it says.

But it also cautions that relative to the average wage, Ireland has the highest child care costs in the OECD - "so improving affordability is essential, particularly for low-income families", it says.

The survey also suggests Ireland moves for further reforms to increase productivity, particularly among small and medium-sized enterprises (SMEs), which it says is the key to raising living standards over the long-term.

"To achieve this goal, public support for innovation should be rebalanced in favour of direct supports, which are more relevant to smaller firms than the tax incentives that currently predominate" it concludes.

Mr Kenny has claimed that the opposition are always good at making money disappear, but unable to bring it back.


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