Looking at the economic prospects for 2003, the international outlook, which is critical to Ireland's open economy, remains characterised by uncertainty. At budget time last December we expected that growth would be modest this year, at 2.5% in GNP terms and 3.5% in GDP terms. However, the global economic and political outlook is shrouded in doubt and the risks to all economic forecasts are, therefore, on the downside. The difficulties in the Middle East, the prospects for the information and communication technology sector, as well as further exchange rate movements are key factors in this regard.