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Dáil Éireann debate -
Tuesday, 25 Feb 2003

Vol. 562 No. 1

Written Answers - Foreign Conflicts.

Jack Wall

Question:

135 Mr. Wall asked the Minister for Finance if his Department has undertaken an analysis or study of the implications for the economy of a war over Iraq; if so, the results of such a study; and if he will make a statement on the matter. [5388/03]

My Department is keeping developments in the world economy generally, and those as a consequence of the difficulties in the Middle East in particular, under ongoing review. The prospective outlook for the world economy was factored into the budget day forecasts for the Irish economy. On budget day I specifically referred to the difficulties in the Middle East as one of the more obvious significant downside risks to those economic projections.

The main channels through which a war in Iraq could affect the Irish economy are through an increase in oil prices and a reduction in global economic growth. As Ireland is a small open economy, which is highly integrated into the global economy through its trade and investment links, a slow-down in world growth would obviously affect our growth prospects.

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