Central Bank dials down overheating threat

A few parts of the economy exposed to the international economy are back at boom-time levels but many other areas are not overheating despite rapid economic growth, according to the latest economic outlook from the Central Bank.

The bank said that even though unemployment will continue to fall next year and was getting closer to the 5% level that had in the past signalled an overheating economy, there may be more slack in the economy than may at first appear.

Bank officials at a press briefing would make no comment on whether the €1.2bn budget package unveiled by Finance Minister Paschal Donohoe would increase or leave unchanged the risk levels facing the economy.