Vol. 567 No. 6
143 Mr. Durkan asked the Minister for Finance if he has satisfied himself regarding the future sustainability of the economy in view of current trends and international competition; and if he will make a statement on the matter. [14935/03]
Following the boom of recent years the economy is now adjusting to a more moderate growth path. The CSO estimates that growth last year was 6.3% in real GDP terms, and 0.6% in real GNP terms. The main implication of these developments is that the economy will have entered 2003 with little momentum. There is still considerable uncertainty about the timing of a global recovery. The risks to the budget day forecasts of GDP of 3.5% and GNP of 2.2% are therefore on the downside. It is essential that we maintain our competitiveness if we are to avoid losing jobs. In this context the implementation of the moderate pay increases agreed under Sustaining Progress is important. Also important is the anti-inflation initiative. Under this initiative, the Government, together with IBEC and ICTU, will work to keep downward pressure on the domestic sources of inflation.
I am confident that if we adopt the correct policies and secure our competitiveness we will be well placed to benefit from the economic recovery when it comes.
