OECD: EU action will help economy

Additional measures from the EU, combined with fiscal consolidation and further progress on structural reforms, would make Ireland well positioned to make a full market return in 2014, according to the OECD in its latest ‘Economic Outlook’ report.

The OECD (Organisation for Economic Co-operation and Development) noted that financial market confidence in Ireland had improved on the back of a successful implementation of the EU/IMF bailout programme. However, this improved market confidence has not fed through to improved lending to households and SMEs.

“Little progress has been made in dealing with non-performing loans and mortgage arrears continue to increase, although at a slower pace. Faster progress on both fronts is essential to strengthen credit growth, domestic demand and job creation.”