Health costs drag on economy, says IMF

THE International Monetary Fund (IMF) has warned Ireland’s health service costs are dragging the economy down and could cause greater debt problems in the coming years.

In a wide-ranging call for cutbacks to slash the country’s mounting financial problems, the economic body insisted the sector is failing to reign in costs.

The IMF said health spending cuts are needed as Ireland may have to make overall reductions of more than €1 billion this year.