IMF recommends further spending cuts and increased taxation

THE International Monetary Fund has delivered a very hard-headed review of Ireland’s economy, warning that the path from crisis to stability and recovery was a very narrow one and recommending further spending cuts and increased taxation.

It does not support the more positive outlook for growth forecast by the Government and said GDP growth will gradually recover to 3.5% by 2015.

The IMF points out domestic demand actually contracted in the first quarter of the year and that unemployment has continued to grow.