Economic crisis - A flicker of light at end of tunnel?

THE endorsement by the International Monetary Fund (IMF) of government policies designed to confront our economic crisis should be a cause for some optimism but as its publication coincided with dismal predictions relating specifically to Ireland from the Organisation for Economic Co-operation and Development (OECD) it may be premature to rest on our oars.

The OECD predicts that our economy will shrink by almost 10% this year, one of the most pessimistic predictions issued during this crisis. The Paris-based agency expects an additional fall of 1.5% next year.

The OECD confirms what we already know and says that “substantial” spending cuts and increases in tax will be needed because of pressure on the public finances.