The Irish economy The Irish economy continues to exceed best expectations. Before addressing difficulties and potential problems, may I acknowledge achievements. We are in an economic position that most would envy and successive administrations deserve credit for this. The problems that we address today are problems of success. The Central Bank estimates growth this year will be 8½%.
There is little evidence of a slowdown. This level of growth cannot be sustained. The signs of overheating of the economy are already evident. Labour shortages, congestion and accelerating house prices are testament to this. There is a dilemma. On the one hand, there is a large budget surplus and an obvious need for high investment in areas such as infrastructure.