There is every reason to be confident in the Irish economy despite "difficult choices" to be made in the Budget, the Taoiseach said.
Speaking at a conference in Co Kerry, Mr Ahern said despite a downturn in the short term, there was every indication of a healthy economy in the medium-term.
He pointed to ESRI and Central Bank reports that say a growth rate of 5 per cent per annum is attainable over the next decade. But he warned this "benign outlook" depended on "prudent and sensible policy in response to the evolving economic situation".
"In particular, it is essential that we continue to focus on delivery of vital infrastructure under the National Development Plan", Mr Ahern said. "Every economic commentator is agreed on this point: we must continue to tackle our infrastructure deficit.
"We know that our infrastructure has not kept pace with our record levels of economic growth. As a result, we face serious deficits in roads, public transport, waste management, energy and telecommunications infrastructure," the Taoiseach said.
"And we need to tackle this deficit so that we continue to attract foreign investment, so that Irish industry can compete, and win, on world markets and so that the economy is in a position to take advantage of the recovery when it comes".
Mr Ahern said the Government faced "difficult choices" in the December Budget.
"Those choices will be made with a view to the long term. We know that the recent progress we have made comes from a balanced approach and from keeping an eye on the long term. That is precisely the approach we will adopt now as we face into a more difficult period".
Mr Ahern was speaking this morning at the Institution of Engineers of Ireland Annual Conference in the Great Southern Hotel, Killarney, Co Kerry.
