Economy buoyant but vulnerable, warns OECD

WAGE increases higher than productivity growth could hit future Irish economic performance and increase inflation, the OECD has warned.

In its latest biannual publication, Economic Outlook, the Organisation for Economic Cooperation and Development stresses the importance of wage settlements in the current bargaining round reflecting productivity developments.

The authors also advise, as a priority, rolling back anti-competitive regulation — as they believe this would spur productivity gains and restrain inflation.