The International Monetary Fund's analysis of the Irish economy was supported last night by Fine Gael, which believed that significant growth can continue if the correct political choices are made.

Fine Gael deputy leader and spokesman on finance, Mr Jim Mitchell said the economy's fundamental strengths, including low taxes, labour shortages and low debt, is evident.

"The recent wobbles in the high technology sector cannot be ignored, but, bearing in mind our other economic strengths, its impact should be limited to reducing Irish growth rates to more manageable levels," said Mr Mitchell.

"The three biggest threats to continued economic growth are the worrying growth in public sector pay, the delays in implementing the National Development Plan and housing. All three have been worsened by Government policy. Furthermore, the growth in public expenditure at over 20 per cent per annum over the past three years is unsustainable

"What is now required is more prudent management of the economy. This, for instance, would suggest that public expenditure should not grow by much more than growth in the economy," he added. went on. "Public spending increases should be kept below 13 per cent next year."