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Strategic long-term approach needed to grow the economy

Written by Robert McHugh, on 24th Sep 2015. Posted in Economy

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The Nevin Economic Research Institute (NERI) have published their latest Quarterly Economic Observer for Autumn 2015.

The report predicts that total employment will exceed 2 million around the middle of 2016 while the general government deficit will improve to 1% of GDP in 2016. It argues that policymakers should reconsider the plan to cut the overall level of taxes in Budget 2016 and instead take a more strategic and long-term investment based approach to growing the economy.

NERI economist, Dr Tom McDonnell commented, "The best way to sustain growth in productivity over the long-term is to invest in education and skills, in productivity enhancing infrastructure, and in the production and diffusion of new technologies and ideas.

"Increased investment in strategic infrastructure, in research, and in the early years of childhood would all help to increase the economy’s future productive capacity.  

"Policymakers would also be wise to pursue measures to reduce barriers to labour market entry. Subsidies for childcare and the gradual tapering of family supports along with income would both help to reduce these barriers.”

Source: www.businessworld.ie

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