Positive economic prognosis a boost to Govt

Ireland's economy will recover more quickly than several other European countries, and concerns about fiscal and political risks to the country are exaggerated, according to leading global ratings agency Standard and Poor's.

The positive comments, made in Washington by S&P's chief economist David Beers, are likely to be seen as a significant boost to Finance Minister Brian Lenihan as he continues to push forward a policy of fiscal reform in a bid to maintain Ireland's international reputation and satisfy EU concerns over the budget deficit.

Mr Beers, among global financial experts attending IMF and World Bank meetings in the US capital, said our competitiveness is improving because of the flexible labour market, and his agency does not detect "reform fatigue" in Ireland's politicians.

He believes our economy will recover from the downturn more quickly than others like Portugal and Greece, because of our more flexible private sector, and the continued flow of foreign direct investment.