Monday, September 6, 2010 Previous editions
The economy will turn the corner this summer, the Central Bank claimed today.
In its first bulletin of the year, the State banking authority warned that improving competitiveness was the key to reversing the downturn.
Experts called for income tax reform to bring more people into the net and a new property tax to improve Exchequer finances.
They also warned that wage restraint had to become the norm if the turnaround was to be sustained.
The Central Bank forecast pointed to a gradual and modest recovery in the second half of the year with the economy shrinking by 2% this year overall.
But it went on to warn that a broad-based recovery would take some time to emerge.
The Bank set out the three main challenges to the economy – ongoing management of the public finances, repairing the banking sector and improving competitiveness.
It warned that Government targets to cut spending by €6.5bn by 2014 had to be met.
Elsewhere, it said unemployment was expected to average out at 13.5%, with emigration and a shrinking labour force easing pressure on the jobs market.
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