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Dáil Éireann debate -
Wednesday, 24 Oct 2001

Vol. 542 No. 6

Written Answers. - Economic Growth.

Derek McDowell

Question:

153 Mr. McDowell asked the Minister for Finance his assessment of the implications for economic growth of the terrorist attacks in the United States on 11 September 2001, particularly the consequential reduction in international travel and tourism; and if he will make a statement on the matter. [25562/01]

The brutality and wickedness of the terrorist attacks in the United States on September 11 were an affront to humanity. These attacks were such a human tragedy it may seem somehow inappropriate to discuss their economic implications. However, there is no denying that the economic impact of these events will be felt all over the world.

The exact extent and duration of the economic impact on the United States will very much depend on the ongoing military response and whether this leads to further terrorist activity. It will also depend on the reaction of consumer confidence in the United States to these unfolding events.

As far as the economic implications of the attacks for Ireland are concerned, because we have an open economy heavily reliant on trade and foreign investment and on international travel and tourism, they will obviously have unfavourable implications for us too.

It is very difficult, just over a month after the event, to assess the full economic impact of the attacks on Ireland's growth and employment. Estimates by market commentators for GNP growth next year vary between 1% and 6%. These estimates are lower than previous fore casts. This illustrates the degree of uncertainty in the current global economic environment. My Department will as usual publish its estimates for economic growth when the budget is being delivered.
Recent events underline the need for a prudent approach to the public finances, particularly over the coming months in order to ensure that the economy weathers the present stormy conditions. Looking slightly further ahead, I have no doubt that in the medium term with the right approach, we can pass through these short-term difficulties and achieve satisfactory levels of economic growth which will benefit us all.
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