Public Expenditure Minister Michael McGrath has said that he “cannot rule out” a recession next year.
Despite fears of job losses in the coming weeks in the tech sector, Minister McGrath insisted that there are still jobs being created in Ireland.
Minister McGrath said the Government was “very open” about the risks facing the Irish economy when the Budget was announced on September 27.
READ MORE: Social welfare scheme to open to another 81,000 people next month
He said that some of those risks have “presented in recent weeks”.
“While there have been job losses, and those are always regrettable, we also, even in recent days, have had a number of significant jobs announcements in Ireland.
“We're not complacent. We are absolutely affected in the course of our international trade in particular by the changing global economic circumstances, But we remain confident that the Irish economy can withstand those pressures.
“Of course, it is a possibility [there will be a recession]. We cannot rule out that scenario.
“If the global environment deteriorates further than would have been predicted in late September, then it is possible that we could remain static or perhaps slip into negative territory.
“Despite that, our overall forecast is that the economy will remain strong.”
Minister McGrath also said that the Government has “no plan” to roll out further cost-of-living measures in the new year, but pledged that the matter would be “kept under review”. He argued that the Government introduced a range of measures through the social welfare system and electricity credits that were introduced as part of the Budget.
From Wednesday onwards, some 865,000 people will receive lump sum payments.
This includes a €400 Fuel Allowance, a €500 cost of living payment to those in receipt of the Working Family Payment, a €500 payment for the Disability Support Grant and a €200 payment to people in receipt of the Living Alone Allowance.
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