The upswing is gaining momentum in the USA, and euro area GDP has increased in the last three quarters. With the exception of Greece, southern Europe was also picking up at the end of 2013. On the other hand, growth has declined in the emerging economies, mainly as a result of weaker development in domestic demand.
Careful management of the public finances over the medium term, with a focus on ensuring sustainable supply-side conditions, remains crucial for the Irish economy. The sooner we take action related to the longer-term challenges that we know we are facing, the lower the ultimate cost will be.