Central Bank puts Ireland's economic growth down to stabilisation measures

Central Bank puts Ireland's economic growth down to stabilisation measures

The recovery in the Irish economy is now “convincing”, the Central Bank says.

In its latest quarterly bulletin, the bank also warned the Government not to squander a chance offered by the upswing to fix problems left over from the financial crash.

Latest figures show the value of the economy grew by just under 7% last year as people are increasingly spending their money and jobs are being created at rate of around 45,000 a year.

The Central Bank said this rising consumption and employment growth “confirm that a convincing recovery is well established”.

Chief Economist Gabriel Fagan said the growth should continue without any major problems over the next two years but warned action must be taken to prevent another boom-bust calamity.

“More importantly, the strong growth outlook provides an opportunity to tackle the remaining legacies of the crisis and minimise future risks to economic, fiscal and financial stability,” he said.

“This opportunity needs to be taken. Reducing the remaining vulnerabilities and strengthening economic resilience are necessary to mitigate the risk of future boom-bust cycles and ensure stable and sustainable medium-term growth.”

The Central Bank said rising wages and low inflation was putting more money in people’s pockets. This was boosting consumer confidence with spending last year growing at its fastest rate since the peak of the boom in 2007.

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