Ireland is regaining competitiveness at an "impressive pace", according to a new report, given that the option of currency devaluation is not at its disposal, writes Caroline Madden.

In an Irish competitiveness report launched yesterday by Goodbody Stockbrokers, economists Dermot O’Leary and Juliet Tennant said the State was pricing itself back into a number of sectors.

“Ireland is now well positioned to compete for IT services and may even see . . . a potential resurgence in activities such as the manufacture of medical devices and engineering products,” Mr O’Leary said.

Labour costs fell 9 per cent over 2009 and 2010 and were projected to come down by a further 4 per cent in 2011-2012, he added.