There was significant employment growth last year, which contributed to keeping unemployment at a low level - currently 4.4 per cent. For 2004, Ireland’s growth prospects appear generally good - particularly as the US and East Asia economies improve. However, considerable uncertainties remain.
Global imbalances continue to pose a risk of a sharp adjustment of exchange rates with implications, in particular, for the US dollar/euro exchange rate. A second significant uncertainty surrounds oil prices, which continue to be subject to the influence of geo-political tensions in the Middle East.