Falling productivity means economy set for 2008 slowdown, warns ESRI

FALLING productivity and an over dependance on construction threatens our economic growth from 2008, the Government’s think tank, the Economic and Social Research Institute (ESRI) has warned.

In its summer bulletin the institute says wages are growing faster than productivity resulting in a decline in competitiveness.

Adding to the problem is the fact that labour has also become a bigger part of the economy rising from 49.6% of GNP in 2002 to a projected 53.9% by end 2007.