The Minster for Finance Mr McCreevy indicated today that an another giveaway budget is unlikely as Ireland feels the chill from the cooling global economy.
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Minister for Finance
Mr Charlie McCreevy |
Speaking at the publication of the Department of Finance’s economic annual review and outlook, Mr McCreevy said that the global downturn will make it necessary "to adjust expectations to meet the new situation."
The Department of Finance expects the Irish economy to slow significantly this year, forecasting GDP of 7.25 per cent.
The Department’s review said that in particular, the downturn in the world economy and adverse developments in the information and communication technologies (ICT) sector are dampening growth prospects this year.
In relation to inflation, the Minister expressed the hope that the inflation trend for the rest of 2001 would be downward, in line with the recent reduction in the consumer price index recorded in July.
Domestically, the measures needed to counteract the threat of foot-and-mouth disease earlier this year affected activity in a number of sectors, notably in agri-food, distribution and tourism.
Growth last year was strong. GNP rose by 10.4 per cent in real terms. GDP rose by 11.5 per cent, more than three times the EU average and the seventh successive year of strong economic expansion.