Warming up: Central Bank sees risk as it lifts growth forecast

While its latest bulletin is full of positive forecasts for the economy, the Central Bank says there is a risk that continued strong expansion could give rise to overheating

Central Bank raises growth forecast

The Central Bank has warned of potential double trouble for the Irish economy, saying that even ifa no-deal Brexit is avoided, the economy is now at close to full capacity and faces the risk of overheating.

It has urged the government toadopt a tighter budgetary policy to reduce the risk of a return to boom-and-bust conditions, and has warned against using windfalls from areas such as corporation tax for extra spending.

In its latest economic bulletin, the bank has lifted its growth forecast for this year to 4.9 per cent, a significant upgrade fromthe 4.2 per cent it expected in its last report. The bank has also raised its 2020 growth forecast from 3.6 per cent to 4.1 per cent.