RESEARCH SUGGESTS NO NEW AUSTERITY MEASURES NEEDED IN NEXT BUDGET
New research shows recovery in the Irish economy is gaining further momentum.
According to latest quarterly economic commentary from Goodbody Stockbrokers, tax revenue is higher than expected, at around a billion so far this year – a figure it expects to grow in the coming months.
It says no new austerity measures are needed to meet the 3 percent deficit target next year.
Goodbody says the water charges -that have already been announced – will bring in 500 million euros, providing the government with an opportunity to introduce measures to improve growth.
Dermot O’Leary, Chief economist with Goodbody, explains what this momentum means.
“Really what’s going on is that the economy is strengthening quicker than expected and we are getting tax revenues higher than expected to the tune of about a billion for the first seven months of the year” he said.
“We think that’s going to grow over the next number of months”.
“By the end of the year we think the deficit could be around 3.7 percent – so the government really doesn’t need to do a lot for next year”.
“It doesn’t have to do anything for next year – and it will hit the 3 percent deficit” he added.