Ivor Callely
Question:210 Mr. Callely asked the Minister for Finance his views on the likely impact on the Irish economy of the slowdown in a number of economies; and if he will make a statement on the matter. [22592/01]
Written Answers. - Economic Slowdown.
The Department's "Economic Review and Outlook", ERO, published in August, revised the 2001 GDP growth forecast downwards to 7.2%, from 8.8% projected at budget time last December. Growth in GNP terms for 2001 was also revised, from 7.4% at budget time to 6%.
The main factors contributing to this revision were the continuing slowdown in the major world economies and the restrictions put in place to successfully contain the outbreak of foot and mouth disease, which adversely impacted on the tourism and farming sectors of our economy. The recent terrorist attacks in the United States seem likely to further dampen global economic prospects, with a recovery in the United States not now generally expected until the middle of 2002 at the earliest.
This will have adverse implications for the Irish economy. A revised forecast will be published with budget 2002. However, I have no doubt that with the right approach the Irish economy can pass through these short-term difficulties and as the global economic environment improves, that we can return to sustainable, solid levels of economic growth in the medium term.