Trevor Sargent
Question:270 Mr. Sargent asked the Minister for Finance the mechanisms which have been put in place to ensure transition to a lower rate of economic growth. [25285/01]
Written Answers. - Fiscal Policy.
It is not entirely clear to what the Deputy is referring.
Economic growth in Ireland has averaged almost 9% – GNP basis – since the mid 1990s. Most commentators had expected that Ireland's economic growth would slow from these high levels of growth to the economy's medium-term potential growth rate of 4.5%-5%. As a result of the poorer global economic environment and the terrorist attacks in the US, Ireland's economic performance in the short term will be weaker than previously forecast.
Policy at this juncture must be geared towards ensuring that when the international economy recovers, Ireland is positioned to benefit fully from that recovery. Only then can we return to a strong growth path in line with our economy's medium-term growth potential.
In particular, we must avoid any weakening of Irish competitiveness on the cost front, sustain investor and business confidence through continued prudent management of the public finances, prioritise public spending towards programmes which improve the long-term capacity of the economy to benefit from the eventual improved conditions and make further progress on structural and regulatory reform.