New housing boom could overheat economy, warns Fiscal Advisory Council

New housing boom could overheat economy, warns Fiscal Advisory Council

The economy could overheat again if too many houses are built in the next few years, according to the Fiscal Advisory Council.

It is warning the Government needs to carefully manage the country's finances, or risk sanctions from Europe.

The council also warned against spending any extra money found in the budget, with debt levels still high.

Michael Tutty, a member of the Irish Fiscal Advisory Council, says a housing boom could cause another overheat of the economy.

"There is a danger that the economy will grow too strongly, will overheat in the coming years, if the housing situation, the number of houses being built accelerates," he said.

"And we're just warning that there is a danger.

"We don't say we're overheated yet, but the economy is growing very strongly, so we should be wary about the future."

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