Warning over global economic uncertainty despite positive Irish growth figures

The Finance Department says the economy here will grow by nearly 5% this year - up 0.5% on budget estimates

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Michael Noonan. Image: RollingNews.ie

The Department of Finance is warning that Ireland is threatened by major uncertainty in the world economy, despite positive new growth figures.

A report sent to EU commission says the economy here will grow by nearly 5% this year.

The latest estimate - based on data up until mid-April - is half a percentage point better than projected in the budget last October.

However, the report warns that global economic uncertainty is higher than at any stage since the height of the financial crisis.

The document highlights uncertainty about China and the possibility of a Brexit as major concerns.

The report authors say "prudent fiscal management and competitiveness-oriented policies" could help Ireland weather a downturn in the world economy.

Jim Power, economist with Friends First, says we need to act now to avoid another crash caused by 'external shocks'.

"There is absolutely nothing we can do about this issues other than to make sure that our domestic economy is as resilient as possible," he explained.