ESRI: Budget may fuel too much demand in 2007
The Economic and Social Research Institute (ESRI) has warned that the recent budget could put too much money into the economy.
In its latest economic commentary, the think tank says it believes Budget 2007 was overly expansionary at a time when the economy is already growing above its potential.
High inflation, high wage growth and the strength of the euro are all exacerbating the situation.
Despite the warning, the ESRI is predicting that Ireland's strong economic growth will continue next year, with GNP rising by 5.3%.
Imports are also expected to grow by 7.4% this year and another 6.9% next year, while export growth is expected to hit 6% this year and 5.1% in 2007.
