Exporters optimistic but warn on inflation

The Irish Exporters Association has predicted that Ireland will return to export growth in 2004 if tomorrow's Budget does not increase inflation.

It pointed to indicators showing the best United States growth since the 2001 recession and the US purchasing manager's index recording its highest rate since January 2000.

Also, the UK purchasing managers' index for October recorded the highest growth since December 1999.

However, it also warned that Irish inflation - though improving - was still twice the European Union average.

Echoing calls of other business leaders, John Whelan of the IEA said today: "The Minister for Finance must deliver a budget that drives Irish inflation lower.

"International competition for exporters has intensified.

"Failure to continue to drive inflation and costs down at this Budget will cost export sales, investment and jobs," he added.