Economy ‘at risk’ from soaring debts

SOARING household debt levels and inflation represent the main threats to the Irish economy, according to a new report from credit ratings agency Moody’s Investors Service.

Though it is concerned about the continued rise in house prices and debt levels, the agency is largely positive on the prospects for the economy.

“One point of concern for international cost competitiveness is the Irish inflation differential with the eurozone, which has started to widen again due to domestic inflationary pressures,” said Moody’s vice president Alexander Kockerbeck.