Cover -- Contents -- I. Introduction -- II. Strong Growth in 2006, Though Housing Market Started to Cool -- III. Growth Slowdown Ahead, with Risks on the Downside -- IV. Ample Room for Fiscal Stabilizers, but Population Aging Ahead -- V. Banks have Large Exposures to Property, but Big Cushions Too -- VI. Labor Market Flexibility is Crucial to Facilitating Adjustment -- VII. Staff Appraisal -- Tables -- 1. Selected Economic Indicators -- 2. Summary of Balance of Payments -- 3. Contributions to GDP Growth -- 4. General Government Finances -- 5. Indicators of External and Financial Vulnerability -- Figure -- 1. Banking System Developments -- Boxes -- 1. Fund Policy Recommendations and Implementation -- 2. Spillovers to Ireland -- 3. Long-Term Fiscal Sustainability -- 4. Finance and Growth -- Appendices -- I. Staff Analytical Work, 2002-07 -- II. Sustainability Exercise -- Contents -- I. Fund Relations -- II. Statistical Issues.