While the outlook is for some deceleration in 2008, growth projections remain reasonably strong by international standards. As economic growth slows somewhat, some upturn in the unemployment rate is likely. However, this is expected to be modest and the forecast is for the economy to remain at close to its full employment position.
Macroeconomic risks to the economic outlook I will now refer briefly to the macroeconomic risks that could pose problems for economic growth if they were to materialise. There is the risk of slower world growth feeding through to the Irish economy. Forecasts from the major international economic institutions suggest that the downside risks are most pronounced for the US.