Dáil Éireann debate -
Wednesday, 1 Jul 1998

Vol. 493 No. 4

Written Answers. - Economic Policy.

John Gormley

Question:

108 Mr. Gormley asked the Minister for Finance if his attention has been drawn to the reports, particularly for the United States, which suggest that global GNP growth is slowing and the idea of a post millennial slump is a real possibility; if he has satisfied himself that his macroeconomic policy, particularly with regard to the anticipated level of budget surplus for the coming number of years, will protect Irish savers and the economy generally from the emerging inflationary pressures; and if he will make a statement on the matter. [16570/98]

Minister for Finance (Mr. McCreevy)

I am not aware of reports by any reputable economic forecasting bodies along the lines set out in the Deputy's question.

Indeed, the strong consensus among international and governmental organisations and independent economic agencies is that relatively strong growth in global output can be sustained over the medium term providing that problems in Asia and particularly those in the Japanese economy are contained.

Low inflation and macroeconomic stability generally have played a major role in supporting Ireland's economic transformation over the last decade. Budgetary policy in 1999 will continue to be consistent with the maintenance of low inflation in the economy, in accordance with the commitment in the communiqué issued at the time of the revaluation of the Irish pound in March last. This policy will also be pursued over the medium term.