IMF: Failure to act could tip Ireland into recession

Ireland is the only EU economy in an austerity programme that is not in recession, but it could become a victim of the others if eurozone and US politicians do not act, the IMF has warned.

It lays the blame firmly at the door of politicians and says that the biggest drag on the global economy now is uncertainty because of policymakers’ failure to act.

The euro area remains the most obvious threat to global growth and unless action is taken quickly, improvements in borrowing costs could be fleeting.