SFA: Economic outlook positive for 2004
In its Autumn economic statement the Small Firms Association (SFA), has said that the economic outlook for the remainder of 2004 is more positive than last year.
However, SFA Director Pat Delaney warns that December's Budget will have a pivotal role to play in shaping investment policies over the next three years.
The SFA is calling on the Government to continue with existing economic policies and to maintain a strong hold on public spending by resisting demands for increases in public expenditure by Government departments.
Mr Delaney said: “Necessity, quality and value for money are the benchmarks the next Minister for Finance must use for any increases in public expenditure.
"The major challenge now is to limit the pick up in our inflation rate.
"As an open economy Ireland is more exposed than most to competitive pressures. Ireland is operating within a single currency area where inflation is likely to remain around 2% for the foreseeable future and we are facing intense competition, particularly from Eastern Europe, China and India.
"It is therefore imperative that we keep cost and price pressures under control. In particular, we must ensure that wage increases are limited to those recently negotiated.
"Otherwise we will lose competitiveness, investment and ultimately jobs."
