The governor of the Central Bank of Ireland has warned that the country’s government needs to pursue a countercyclical fiscal policy to prepare for possible future risk.

Short- and medium-term projections for the Irish economy foresaw “considerable expansion”, said Philip Lane in a speech given in Dublin on September 8. Ireland’s recovery was mainly driven by home-grown factors, he noted, with domestic demand projected to grow by 4.5% in 2017 and by 4.0% next year. Unemployment was set to fall