IIB economist says IMF report is overly pessimistic

The chief economist with IIB has disputed the IMF's contention that Ireland's economy is becoming "increasingly imbalanced" due to a heavy reliance on construction and the property market.

In its latest assessment of Ireland, the International Monetary Fund expresses concern about this imbalance, despite predicting a strong economic performance in Ireland over the coming year.

IIB economist Austin Hughes says he believes that, while the IMF is right to point out risks to the economy, it may also be overstating the dangers posed by the level of reliance on construction.

"I don't think that the economy is quite as unbalanced as the IMF is suggesting, because certainly we need to boost our infrastructure, and that means the construction sector will remain strong," he said.