Olwyn Enright
Question:79 Ms Enright asked the Minister for Finance his views regarding the pattern of economic growth and if it necessitates an adjustment in Government policy. [38977/05]
View answerTuesday, 13 December 2005
Questions (48)
Written answers
The main contributors to economic growth this year are personal consumption and investment, with a weaker performance by exports compared with previous years. The composition of economic growth will vary over time and from year to year. As an economy matures, the part played by consumption will tend to increase. The significant growth in investment is a positive development as it enhances the economy's capital stock, thereby providing a basis for future economic growth.
Export performance in any given year is affected by a range of factors. These include external developments such as growth in world demand and exchange rate movements as well as internal factors such as competitiveness and the level of inward investment. It can also be affected by supply side factors particular to individual industry sectors such as the ICT and chemicals sectors, both of which account for significant shares of manufacturing output in, and exports from, Ireland. To secure future export growth requires investment now in all forms of capital, physical capital and knowledge based capital. That is the strategy I am pursuing in my budget.