The Government's financial watchdog has warned that our economic outlook is being distorted by multinational companies.

The Irish Fiscal Advisory Council says big businesses, based here, make it seem like economic activity is far healthier than it really is.

However it IS reassuring people that the economy is recovering at a 'reasonably solid rate'.

The exceptionally high 26 per cent growth rate predicted by the Government earlier this summer, was internationally mocked after it was dubbed 'leprechaun economics'.

John Mc Hale - the Chair of the Fiscal Council - said: "Unfortunately, focusing on specific taxes goes beyond the mandate of the council, effectively the mandate doesn't really allows us to comment on those issues. But in broad terms, we should maintain a broad tax base to make sure our taxes are sustainable, and that any changes to the tax code, recognise the risks that are out there."