ESRI predicts slowdown in economic growth in 2008

Ireland's economic growth is expected to slow considerably next year, according to the latest assessment from the ESRI.

The think tank says maturing SSIAs will fuel performance in 2007, but job creation and housing investment will ease off in 2008.

It says the current boom is being driven mainly by domestic demand and the economy will not be able to sustain existing growth rates without a recovery in exports and an improvement in competitiveness.

Elsewhere, the ESRI's latest quarterly report also expresses concern about the number of vacant houses in Ireland.

It says 40% of all new houses built between 2002 and 2006 are vacant.

The reasons are unclear, but most are believed to have been purchased as holiday homes and speculative investments.

The ESRI says such speculation poses a threat to the property market and could be the single biggest cause of a price correction.