Competition must be a priority for Ireland’s trading sector given the currently international downturn and economic uncertainty, said Forfás in its 2001 review and outlook 2002 statement published today.
The report warned that the international economic prospects for 2002 are only slightly better than the disappointing out-turn in 2001, and that "considerable uncertainty surrounds these modest prospects".
Commenting on the prospects for the coming year, the Chief Executive of Forfás Mr John Travers said the Irish trading sector must overcome "considerable threats" if it is to maintain competitiveness and economic growth.
In addition to the current international environment, Mr Travers said there has been a deterioration in the factors that underline competitivenes: hourly wage increases; infrastructural deficits; and the levels of inflation.
A stronger link between wage increases and productivity across all trading sectors was the first of five key components outlined in the report as necessary to ensure the sector’s competitiveness.
The slippage in infrastructural investment must also be addressed, the report said, along with an increase in the attention given to the management of infrastructural programmes.
The other components included developing a good telecommunications infrastructure and services at competitive prices; the generation and distribution of electricity at competitive rates; and continued investment in research and development.
However Mr Travers said Ireland was entering the period of slower economic growth with considerable strengths particularly the "extraordinary" growth rates over the past decade.
He said other positive factors for 2002 included a good base of enterprise; an adaptable labour force; a greater sense of reality following last year’s economic downturn; a strong public framework; and a successful participation in the EMU process.