Dáil Éireann debate -
Tuesday, 22 Jun 1999

Vol. 506 No. 5

Written Answers. - Turnover Growth in Ireland.

Ivor Callely

Question:

128 Mr. Callely asked the Minister for Finance if the turnover growth in Ireland will continue to rise further in comparison to our EU counterparts; the areas where further growth is expected or will decline; and if he will make a statement on the matter. [15751/99]

Minister for Finance (Mr. McCreevy)

I presume the Deputy is referring to the growth of output in GDP and GNP terms.

As the Deputy is aware, Ireland is experiencing a period of strong output growth in terms of both GDP and GNP. Since 1993 GNP has grown by 8 per cent per annum while GDP expanded by 9 per cent per annum. This is well in excess of the growth rates achieved by our EU partners. Last year it is estimated that GNP grew by about 8 per cent. Industrial production was up 17 per cent while retail sales were over 8 per cent higher.

It is expected that the economy will continue to expand in the immediate future, albeit at a slower rate than in the recent past. On budget day growth in GNP of just under 7 per cent was forecast for 1999. Growth in GNP of 5.7 per cent and 5.2 per cent were forecast for 2000 and 2001 respectively.

Over the medium-term it is believed that growth will slow to a more sustainable 4-5 per cent per annum. This reflects the expected slowdown in labour force growth compared with the 1990s and the tighter labour market conditions. All the components of GNP – personal consumption, investment and exports – should make a contribution to this continued growth.