US economic recovery real, sustainable

THE economic recovery in America is real and sustainable and augurs well for Ireland, a former member of the Bush administration told Irish businesses yesterday.

Philippa Malmgren, who was special assistant for economic policy at the White House, said both America and Ireland could look to small businesses to lead the way in creating jobs. Both countries shared an entrepreneurial culture and current low interest rates would reward US and Irish risk-takers by allowing them to borrow money cheaply to build up their businesses, she said.

Dr Malmgren said European observers had failed to pick up on Washington’s confidence in a recovery because it was being driven by small business. “Two thirds of the net new job creation is driven by firms that employ fewer than 100 people. This makes it hard for foreigners to anticipate the recovery,” she said, adding that Europeans preferred to follow America’s biggest 500 companies.