Sharp drop in Irish house prices could harm EU - IMF
14/04/2005 - 08:12:14The US-based International Monetary Fund has reportedly warned that a sharp fall in Irish and Spanish house prices could harm the European economy.
Reports this morning said the organisation had identified house prices in Ireland and Spain as a risk to economic recovery in the Eurozone - the countries that use the single European currency.
The IMF, which has previously concluded that Irish property is overvalued by up to 20%, also identified volatile oil prices and an increase in household savings as threats to consumer demand in the Eurozone.
