Economist warns about risks of house price 'correction'
22/03/2006 - 10:10:56Friends First economist Jim Power has said overdependence on the property market is placing the Irish economy in a vulnerable position.
In his latest quarterly outlook, Mr Power says the Irish economy is currently performing strongly, with GNP growth of between 4.4% and 4.9% expected for 2006 and 2007.
He also says consumer spending is back at Celtic Tiger levels due to rising salaries, the imminent maturing of Special Savings Incentive Accounts and an increasing level of borrowing.
However, Mr Power says the housing market is a real cause for concern, with any "correction" in house prices likely to have a substantial negative effect on the economy.
