External economic shocks which could disrupt Irish economic performance include a sudden sharp rise in euro interest rates or a sharp fall in the value of US equities

The existence of a potential bubble in the housing market leaves a particular vulnerability

Economy also vulnerable to domestic factors such as excessive wage demands, the pressures on infrastructure and inappropriate fiscal policy

Higher-than-expected growth would also pose challenges, particularly for infrastructure and investment

A substantial Exchequer surplus needed when economy is at trend growth to allow Government scope to undertake a counter-cyclical policy to cushion the economy from adverse shocks