Last year's record job promotion performance by Enterprise Ireland and IDA Ireland will be difficult to replicate in 2001, Forfas has warned in its yearend review and outlook. "There is evidence of a slowdown in the US economy," said Mr John Travers, Forfas chief executive. "A significant US slowdown could result in a postponement or cutback in investment in US-owned projects in Ireland."

Job gains in client firms of Enterprise Ireland and IDA Ireland amounted to more than 40,300 in 2000, said Forfas.

While there was some acceleration in job losses towards the end of the year, overall job losses in Enterprise Ireland and IDA Ireland client firms declined by more than 3 per cent to 18,400 in 2000 compared with 1999, said Forfas.

"Increasing emphasis needs to be placed on improving our standard of living by moving up the value chain in the production of goods and services. This requires a knowledge-driven society, supported by a high level of research and development," said Mr Travers.

Several issues would affect growth and competitiveness in 2001, he added. Growing infrastructural bottlenecks were becoming apparent within the economy, he said. The pace and scale of economic expansion in recent years had reduced the size of the State's electricity reserves and created an immediate requirement for new generating capacity and significant investment in the expansion of the transmission and distribution infrastructure, said Forfas.

Further strengthening of competition policy and regulatory reform were also essential, said Mr Travers. He is concerned about delays by firms in preparing for the changeover to the euro.

On the positive side, further progress was achieved in the regionalisation of agency promotional activities, with more than 20 per cent of gross job gains going to the Border, Midland, West region compared to just over 17 percent in 1999.