Dáil Éireann Debate, Thursday - 17 January 2013
80. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects economic recovery and targets set in this regard to be achieved throughout the course of 2013 with particular reference to economic competitiveness and job creation as a result; and if he will make a statement on the matter. [2206/13]
View answerAs outlined in the Budget, my Department is forecasting real GDP growth of 1.5 per cent in 2013, which represents a third successive year of growth for the Irish economy. Data published since Budget Day, including third quarter of 2012 National Accounts figures, are consistent with these projections and they are broadly in line with the forecasts of other institutions. The recovery of the Irish economy will continue to be led by the exporting sector which is forecast to grow by 3.3 per cent in 2013. This, in no small part, will be aided by the recent improvements in price and cost competitiveness, improvements which are expected to continue into 2013. For instance, the European Commission is forecasting that our nominal unit labour costs will fall by 1.0 percent in 2013 compared with an increase of 1.2 percent for the euro area as a whole.
Addressing unemployment remains the main priority of this Government and Budget 2013 contained several measures aimed at addressing this issue. In particular, the additional supports introduced for the job-rich SME sector are intended to compliment the work undertaken by the Department of Jobs, Enterprise and Innovation in relation to the Action Plan for Jobs and to encourage job creation.
Recent indicators have also shown some tentative signs of stabilisation in the unemployment rate, although at very high levels. Some pick-up in employment is expected in 2013, with net job creation anticipated by the second half of the year and further net gains projected thereafter.
