The Taoiseach has again warned that wage expectations must be tempered if the Irish economy is to remain competitive.
In a studiously upbeat message on the Government's management of the economy, Mr Ahern stressed the positives and ignored possible negatives, such as the inability of the Government to cool the voracious housing market. House price inflation in the 12 months to March was 13.3 per cent, nearly seven times the rate of inflation.
Mr Ahern said the economic data coming from the State agencies this week was the "envy of our competitors". Inflation is at its lowest level for four years and GNP growth was 5.5 per cent in the final quarter he said.
Ireland has a growth rate well above the EU average and an annul income per head among the highest in Europe, Mr Ahern told delegates at the Institute of Bankers annual spring lunch in Dublin this afternoon.
Figures released today show the number of people on the Live Register feel in March and that Ireland continues to have an unemployment rate well below the EU average.
Commending the financial services sector for the skills and direct employment it brings to the country Mr Ahern said the "only way to build on this [success] is to remain competitive".
He said as an open economy Ireland is reliant on trading partners and as a result has to keep our costs in line with our competitors.
In a thinly veiled message to the unions ahead of the next round of pay talks the Taoiseach said: "I do not want to sound as if every silver lining has a cloud, but we do need to keep things in perspective.
"One of our failings 30 years ago was that we perhaps spent our good fortune before we earned it. Let us learn from that and measure our actions and expectations accordingly".