Dáil Éireann Debate, Tuesday - 27 March 2018
76. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which he is satisfied that the targets already identified for 2018 and thereafter in the context of Project Ireland 2040 are achievable and that the resultant economic benefit will accrue as anticipated; and if he will make a statement on the matter. [13648/18]
View answerAs part of Budget 2018, my Department forecast real GDP growth of 3.5 per cent this year. The labour market should benefit from this, with employment growth of 2.3 per cent expected this year. Strong employment growth is set to further reduce the unemployment rate, to around 5 ½ per cent by the end of this year.
Recent economic indicators have generally been positive and are consistent with a continuation of strong growth in the economy. My Department will publish updated economic forecasts as part of the 2018 Stability Programme Update in April.
While the short-term outlook is positive, there are a number of risks at present both internationally and domestically. Externally, the principal risk is the impact of Brexit. However the policy stance in the US, in relation to both trade and taxation, is also a key source of uncertainty. Domestically, competitiveness, housing supply pressures and the potential of overheating are among the significant risks we face.
The best way to mitigate such risks is to improve the resilience of the economy. The Government will play its part by continuing to implement competitiveness-oriented policies – including those that address bottlenecks – and ensuring that the public finances continue to be managed in a prudent fashion.
Such policies will have an important role to play if the strategic outcomes identified as part of the Project Ireland 2040 are to be achieved.
