Central Bank asks for budgetary restraint is needed

The Central Bank has warned that the economy remains vulnerable to adverse shocks and said further financial consolidation will be needed to meet medium-term budgetary objectives.

Speaking yesterday at the publication of its latest quarterly economic outlook, Central Bank chief economist, Gabriel Fagan said that Ireland’s debt levels remain very high by international standards and that the economy would still be vulnerable to an adverse economic shock.

He said there is a need to reduce debt to lower and safer levels and further consolidation will be needed in the next few years. Mr Fagan further commented that this year’s target of achieving a budget deficit of 2.7% of GDP is still above the medium-term objective.