Government must give certainty to businesses and consumers on Budget

IBEC, today said that the National Accounts data from the CSO show that the exporting sector continues to drive the economy, though at somewhat reduced pace. The group repeated its call for Government to boost public confidence by giving consumers and businesses an indication of the scale of adjustment in the forthcoming Budget.

Commenting on the data, IBEC director general Danny McCoy said: "The slowdown in Q2 exports and industrial output is not that surprising given the very strong performance in Q1, and there were tentative indications that the domestic economy is stabilising. Building and construction may have turned a corner and there was a marked slowdown in the pace of decline in consumer spending and consequently in GNP. This tallies with recent labour market figures, which showed that employment losses slowed significantly in Q2. However, this trend needs to be built on.

"Government has an important role in stabilising sentiment and perceptions about the economy. The banking crisis has eroded public confidence in recent months. Government has an opportunity to give consumers and businesses some certainty about the outlook for 2011 by giving a definitive indication on the nature and scale of the fiscal adjustment in the forthcoming Budget," concluded Mr Mr McCoy.

Article Published: 23/09/2010