Bernard Durkan
Question:67. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which fundamental economic indicators are coming into line with good practice; and if he will make a statement on the matter. [8812/14]
View answerThursday, 20 February 2014
Questions (67, 69)
Bernard Durkan
Question:69. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which economic indicators here compare with other eurozone countries; and if he will make a statement on the matter. [8814/14]
View answerWritten answers
I propose to take Questions Nos. 67 and 69 together.
Signs of economic recovery are increasingly evident. In the third quarter of last year, GDP increased by 1.5 per cent; while fourth quarter figures are not yet available, high frequency data are reasonably encouraging. The resumption of economic growth reflects the improvement in our competitiveness that we have seen in recent years and is indicative of a very flexible economy. But we are also seeing a moderate recovery in domestic demand, suggesting that some of the imbalances built up during the bubble years are being corrected.
My Department estimates that GDP rose by 0.2 per cent last year; this compares with an average decline of 0.4 per cent across the euro area. However, developments in euro area trading partners have been relatively encouraging since the middle of last year, with the euro area returning to growth after several quarters of contraction.
I am particularly encouraged by recent developments in our labour market. The unemployment rate, although still unacceptably high, has declined by nearly 3 percentage points in under two years to 12.3 per cent in January. Supporting this reduction in the unemployment rate has been a resumption of strong employment growth, with employment increasing by 3.2 per cent (58,000 jobs) over the year to the third quarter of last year, the highest year-on-year rate of growth in the entire EU according to Eurostat figures.
Although developments in Ireland of late have been encouraging, it is of course worth noting that we do not move in isolation. A recovery in our European partners is vital if we are to continue the recent positive momentum we have seen in Ireland and achieve sustained growth over the medium term.