IMF urges Irish government to focus on fiscal buffersStaff Writer | June 27, 2017
The International Monetary Fund recommended the Irish government to focus on rebuilding fiscal buffers, strengthening economic resilience and fostering sustainable and inclusive growth.
Ireland The Article IV consultation
While the outlook for the banking system is positive, the directors observed that Brexit-related uncertainties, international regulatory changes, and elevated NPL levels pose challenges.
Directors stressed that the strong momentum in the housing market requires close monitoring and cautioned that persistent pressures may lead to imbalances.
The IMF forecast real GDP to grow at 3.9% in 2017, propelled by strong domestic demand. Over the medium-term, growth was projected to decelerate and converge towards its potential of about 3%.
Inflation was expected to stabilize at just below 2%.
Public finances were projected to improve further, allowing the government to attain its Medium-Term Objective of a structural deficit of 0.5% of GDP next year, the IMF said. ■