The Republic's economy shows no signs of slowdown and will grow by almost 10 per cent this year, Dr Dan McLaughlin, chief economist at ABN Amro, has said. He also predicts a wage rise of 6 per cent this year. Dr McLaughlin says wages remain low in a euro context and relative to productivity in Ireland.

He also stressed that the economy was nearing full employment. "We now need labour from other sources such as increased migration and participation. The two main factors inhibiting more married woman from entering the workforce is the still ludicrously-high top rate of tax at 46 per cent and the lack of child care."