The latest report on Ireland's economy from the International Monetary Fund (IMF) has praised the measures taken by the government to bring themselves out of recession.
While warning that its currency strength and economic growth is likely to be more gradual than anticipated, the IMF said the "assertive steps" taken by policy makers have gained significant credibility abroad, and reassured the global community and international financial markets.
The report commended finance chiefs for staying the course with fiscal reform plans without too much resistance from voters, and said that was crucial to maintain.
"Staying on target is critical to retain the hard-earned credibility," the IMF said in a statement, warning of the risk of "consolidation fatigue".
Irish GDP is predicted to fall by around 0.5 per cent in 2010 compared with 2009. Growth rates should gradually rise to about 3.5 per cent in 2015. The Irish finance ministry forecast in the budget of December 2010 that GDP would swing to growth of 3.3 per cent in 2011 from a contraction of 1.3 percent this year.
Finance Minister Brian Lenihan welcomed the report and said the cabinet was committed to meeting its fiscal reform targets. "I acknowledge the importance of continuing on the consolidation path," he agreed.
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