Fiscal consolidation ‘could lead’ to lower-than-predicted economic growth

FISCAL consolidation is now the driving force in many economies and could result in lower than previously expected growth in the years ahead.

Concerns are growing that, with pressure on governments to get their fiscal policies into shape, budget constraints could undermine future growth potential, said Michael Crowley, economist, Bank of Ireland.

“Fiscal consolidation is now the name of the game in many countries,” he said.