The Organisation for Economic Co-operation and Development (OECD) says Ireland is back on its feet and in growth mode. The OECD says the worst is now over and most of the heavy lifting to put Irish debt on a downward path will soon be behind us.
It says the country is on the verge of becoming the first bailed out European nation to successfully exit its financial rescue programme. However the international economic watchdog is warning that the road ahead is challenging with more needed to reinvigorate the economy.
In its latest two-year review, it says that while job creation is picking up long-term and youth unemployment remains unacceptably high.
More than 13% of the labour force remains unemployed, with more than 60% out of work for more than 12 months, among the highest rates in the OECD.
It says that young people have been especially hard hit by the jobs crisis. "The youth unemployment rate is 28.6%, while the number of young people emigrating continues to mount. At 11.3%, Ireland has the OECD's third-largest share of 15 to 19 year olds who are neither employed nor in education or training" it adds.
The OECD recommends that Ireland do much more to assist the unemployed, notably long-term job-seekers.
It points out a critical need for support and retraining, "to ward against social exclusion and ensure that young people are prepared to work as the recovery strengthens".
The survey was presented in Dublin by OECD Secretary-General Angel Gurría and Tánaiste Eamon Gilmore. The body says "it points to an ongoing, gradual emergence from the crisis".
Activity is slowly recovering, the external deficit has been eliminated and the country has had success in regaining access to market financing, the report says.
"Adherence to the government’s current budget strategy should soon put the debt-to-GDP ratio - now approaching a turning point above 120% - on a sustained downward path, supporting confidence and maintaining affordable access to financial markets. Ireland should stay the course on this front" it adds.
Among its recommendations to boost innovation, the Survey recommends consolidating the 170 budget lines and 11 major funding agencies into two groups - one dealing with science and basic research, and another with applied research and innovation.
Angel Gurría says the report is good news for Ireland.
Image: ©OECD
