Vol. 530 No. 6
179 Mr. Callely asked the Minister for Finance his views on Ireland's recent economic success; the key principles to ensure continued competitiveness and sustained economic development; the likely impact of the downturn of the United States economy; and if he will make a statement on the matter. [4424/01]
The performance of the Irish economy in recent years in terms of strong growth in output and employment has been exceptional both by international standards and in terms of our own experience. A combination of sound economic and budgetary policies linked to social consensus, positive demographic factors, strong foreign direct investment and EU transfers has resulted in a transformation of our economic situation.
Ireland's growth has been well balanced with all the main components of demand contributing to the robust performance. It is estimated that real GNP increased by around 8.6% in 2000. This follows on average growth of 7.8% since 1993. Our economic success is most clearly reflected in the fact that, at the end of last year, unemployment reached a record low of under 4%.
One of the key requirements in maintaining competitiveness is to ensure that our vulnerability to economic shocks from external sources is minimised and that we are in a position to cope effectively with them should they occur. In this context the Programme for Prosperity and Fairness is a cornerstone of economic policy and it is essential that it continues to be implemented in a manner which provides a stable foundation for continued economic growth. Measures to promote structural reform to increase competition are also important. Pursuit of excessive expectations would inevitably damage economic and employment growth, push up unemployment and undermine our capacity for further social progress. It is also vital to ensure that infrastructural constraints are addressed and that we continue to encourage increased labour force participation. These considerations have been at the core of the Government's economic policy.
As the Deputy will be aware, Ireland has been particularly successful in attracting US investment, while that country is also an important export destination. On both counts Ireland has some exposure to any downturn in the US economy. The core response is to continue the thrust of existing Government policy and, in particular, to build on achievements to date in developing our national competitiveness in the broadest sense of that term.
Question No. 180 answered with Question No. 67.
