Economic Growth.

Dáil Éireann Debate, Wednesday - 29 June 2005

Wednesday, 29 June 2005

Questions (182, 183)

Charlie O'Connor

Question:

185 Mr. O’Connor asked the Minister for Finance the amount by which the economy grew in 2003 and 2004; the increase in employment resulting from such growth; the likely impact on employment had the economy grown at half the rate achieved in those years; and if he will make a statement on the matter. [23153/05]

Written answers

Minister for Finance (Mr. Cowen)

Figures from the Central Statistics Office show that in 2003 the economy grew by 3.7% in GDP terms and 2.8% in GNP terms. Employment in 2003 expanded by 1.9%. In 2004, the economy is estimated to have grown by 4.9% in GDP terms and 5.5% in GNP terms and employment grew by 3%.

The impact on employment of lower than forecast growth would vary according to the source of the lower growth. For example, if growth was lower due to a fall in net exports the employment effect could be expected to be less than if growth was lower due to slower growth in domestic demand.

Charlie O'Connor

Question:

186 Mr. O’Connor asked the Minister for Finance the amount by which the economy is anticipated to grow in 2005; the increase in employment he expects from such growth; the likely impact on employment should the economy grow at half the rate anticipated in 2005; and if he will make a statement on the matter. [23154/05]

Minister for Finance (Mr. Cowen)

At budget time my Department forecast growth in 2005 to be 5.1% in GDP terms and 4.7% in GNP terms. Employment growth was forecast at 1.9%. As is customary, these forecasts will be updated in August with the publication of the Economic Review and Outlook.

The impact on employment of lower than forecast growth would vary according to the source of the lower growth. For example, if growth was lower due to a fall in net exports the employment effect could be expected to be less than if growth was lower due to slower growth in domestic demand. It should be noted, however, that available data point to strong employment growth in the first quarter of this year. According to the quarterly national household survey, total employment grew by 3.9% year on year in the first three months of 2005.