Wednesday, 26 June 2019

Questions (76)

Micheál Martin


76. Deputy Micheál Martin asked the Minister for Finance if he and his officials have discussed the most recent ESRI report published on 20 June 2019. [26859/19]

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Written answers (Question to Finance)

As part of ongoing engagement between my Department and external institutions, officials within my Department engaged in discussions with officials from the ESRI in relation to the publication of its Quarterly Economic Commentary on Thursday 20th June. My officials have briefed me on the findings and recommendations that are set out by the ESRI in its report.

In terms of the overall macroeconomic growth, I note the ESRI are now forecasting that GDP will expand by 4.0 per cent this year, and by 3.2 per cent next year. These figures are broadly in line with my Department’s forecast as set out in the Stability Programme Update (SPU) 2019.

Similar to the ESRI’s assessment, I also acknowledge that since the publication of the SPU 2019 in April, risks to the economy have intensified, most obviously the increasing possibility of a disorderly Brexit in October. As such, the Summer Economic Statement (SES) is being prepared on a two-track basis; one scenario based on an orderly exit, and one on a disorderly exit.

On the public finances, I also note the ESRI’s recommendations. In the SES I will set out the key elements of the Government’s economic and fiscal strategy for Budget 2020.