Housing downturn could hit economy

ECONOMIC growth faces serious potential threats from a sharp downturn in the housing market or from a collapse of the dollar, says the Economic and Social Research Institute (ESRI) in its last quarterly economic commentary for 2004.

It claims the risks stem from necessary adjustments within the US economy and from the extent to which Irish economic growth is exposed to the high volume growth of house building.

In its quarterly economic review, the Economic and Social Research Institute says it wants to see gradual unwinding from these positions.