Dáil Éireann Debate, Thursday - 16 December 2021
263. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which Ireland’s trading position continues notwithstanding the effects of Brexit; and if he will make a statement on the matter. [62733/21]
View answer266. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that Ireland’s economy can and will remain competitive throughout the EU and or third countries; if particular economic threats have arisen in recent times not excluding Brexit or Covid-19; and if he will make a statement on the matter. [62736/21]
View answerI propose to take Questions Nos. 263 and 266 together.
The latest figures from the CSO confirm the continued recovery of the domestic economy in the third quarter, as the success of the vaccination programme allowed for the easing of restrictions. Ireland’s external trade has supported the economy throughout the pandemic.
The global economy experienced the shock of the Covid-19 pandemic in a reasonably symmetric way and a strong but uneven recovery is under way. The economies of our major trading partners, including the EU, are expected to rebound significantly this year and next, creating a supportive external environment for Ireland’s trade going forward.
Multinational sector trade proved very resilient during the pandemic, and has continued to experience strong growth in 2021. Indigenous sector trade was more detrimentally affected by the pandemic, but has been recovering in line with strengthening global demand.
Looking to the future, the outlook for Irish indigenous exports is brighter in light of the strengthening global recovery, although Brexit is expected to have an impact on indigenous exports from next year. The Irish modified current account, which strips out the effects of globalisation, is in a strong position and is expected to remain in surplus over the medium term. This reflects the persistence of Ireland’s competitiveness on the international stage, for both indigenous and multinational trade.
Aside from Brexit and Covid-19, risks to Ireland’s external position include supply-side bottlenecks in international goods trade, global inflationary pressures and general macroeconomic risks which threaten the anticipated recovery among our trading partners. As a small open economy, Ireland is particularly exposed global risks and my Department continues to monitor them closely.
