Dáil Éireann Debate, Thursday - 8 March 2018
76. Deputy Michael McGrath asked the Minister for Finance if he has undertaken an assessment of the economic impact of recent adverse weather conditions; his plans to review projections for economic growth for 2018 in view of recent adverse weather conditions; and if he will make a statement on the matter. [11615/18]
View answerThe recent adverse weather conditions had a substantive impact on our country, affecting both day to day life in society and activity in our economy. Many businesses took prudent measures to ensure the health and safety of customers and staff and closed their businesses for a number of days.
This is likely to have had some adverse impact on the Irish economy, but it is not yet possible to quantify the extent of that impact. Furthermore, the overall affect will depend on the extent to which economic activity was deferred until the adverse weather had passed.
The retail sector in particular is likely to have been negatively affected as a result of the weather conditions and this may be reflected in the Retail Sales Index for March. Fortunately, retail sales have been robust over the last year, with 'core' retail sales increasing by 7 per cent on an annual basis in 2017. This growth has been driven by rising household incomes and sustained consumer confidence and these factors will help to mitigate the short term impact of the adverse weather conditions.
Households, along with businesses and the public sector, will also have incurred additional expenditure, given the additional heating and lighting costs along with the added costs of repairs and maintenance as a result of the weather.
As set out in Budget 2018, The Department of Finance estimated real GDP growth of 3.5 per cent in 2018. These forecasts were endorsed by the Irish Fiscal Advisory Council (IFAC). The Department will publish updated forecasts in April with the Stability Programme Update 2018.
