The Irish economy's "alarming fragilities" have been exposed by today's ESRI report that forecasts a dramatic slowdown in economic growth, Fine Gael said today.
The ESRI said the number of new houses completed this year would fall to 76,000 and 65,000 in 2008, lower than it had previously thought and that this would prompt an economic slowdown. It is predicting the economy will grow by 4.4 per cent this year, compared to its forecast of 4.8 per cent three months ago.
In its latest quarterly economic commentary, published last night, the ESRI has also revised its economic growth forecast for 2008 down to 2.9 per cent from the 3.7 per cent it predicted in June.
Fine Gael finance spokesman Richard Bruton said the Fianna Fáil Government had acted as "incompetent economic managers intoxicated by five years of easy credit, soaring property prices and a booming construction sector."
"The report, which forecasts a dramatic deterioration in employment growth and a sharp rise in unemployment, exposes the alarming fragilities that have emerged in the Irish economy in recent years," he said.
"It is becoming increasingly apparent that this Government's self-perpetuated reputation for economic competence rested on very shaky foundations - a debt-fuelled housing boom that the Government did nothing to control."
Labour's party spokesman on enterprise Willie Penrose said there was an urgent need for Fás to put in place employment and training services for people working in the construction sector. "The ESRI Quarterly Economic Commentary published today, offers yet another gloomy outlook for employment prospects in the construction sector. Taken with the view offered by the Construction Industry Federation this week, it seems clear that many construction workers will be facing into more difficult employment prospects in the next few years," he said.
"The Government should not wait around for a problem to develop. It should be putting plans in place now to engage with people who are coming out of the construction sector, offering them assistance and support in finding alternative employment."
