The outlook for the Irish economy is more sombre than it has been for a decade according to one of Ireland’s leading economists.
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Professor Brendan Walsh of the Smurfit School of Business said the "rosy scenario" painted by the Minister of Finance in the last budget "now reads like pulp fiction".
Speaking to a gathering of US and Irish American business leaders at the Metropolitan Club in New York last night, Prof Walsh said concern was mounting in Ireland about the repercussions of the incipient US and European recessions on the economy.
"A year ago the main concern was whether or not the economy could maintain the breakneck pace of growth of the 1990s."
"However, this inflow has now fallen sharply and the fear is that there will be net outflows before the recession bottoms out", he said.
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"As the external situation continues to deteriorate the growth rate is likely to fall from last year’s 11 per cent to a mere 3.5 per cent for 2001 as a whole."
Meanwhile another leading economist predicted that 10,000 jobs could be lost in the Irish technology industry as a result of the present downturn in the global economy.
Friends First's director of investment strategy Mr Jim Power also forecast Irish GNP would fall to as low as 2 per cent next year.
Speaking to the Waterford Chamber of Commerce Mr Power said US would move into recession incurring negative growth in the third and fourth quarters of this year.
He said the Irish tourist industry faced a lean period as the US market would completely dry up in the coming months.
