However, despite all the problems, we have to be grateful that our economy was able to maintain a growth of 5.3 – 5.6% in 2005. This growth has helped provide work for only some of those entering the job market and leaving the others adding to the “openly unemployed” statistics.
Risks to this outlook are broadly balanced over the medium term: on the downside, they relate to weaker than expected euro area growth; on the upside, risks could stem from further increases in indirect taxes and higher than expected energy prices. Our monetary analysis gives a picture consistent with price stability over the medium term.