Dáil Éireann Debate, Thursday - 22 June 2023
216. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his Department continue to maintain the competitiveness of the economy in the context of European and international markets; and if he will make a statement on the matter. [30445/23]
View answer220. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he is satisfied this country remains a competitive economy and attractive to indigenous investors and foreign direct investors; and if he will make a statement on the matter. [30449/23]
View answerI propose to take Questions Nos. 216 and 220 together.
Ireland’s long-standing reputation as a stable and pro-enterprise jurisdiction is reflected in the continued investment in the economy. The most recent figures show the stock of foreign direct investment (FDI) in Ireland stood at over €1.2 trillion at the end of the first quarter of 2023. The multinational sector contributes to the domestic economy through employment as well as income and corporation tax receipts.
It is important, given the impact of FDI on the domestic economy, that Ireland maintains its competitive position internationally. Ireland’s talented and flexible workforce, strong legal and regulatory landscape, and reputation as a stable economy all contribute to our competitiveness in encouraging both indigenous and foreign investment. Continued investment in skills and infrastructure will help Ireland to remain attractive in this regard.
The domestic economy has proven resilient in the face of various headwinds over the past year and prospects for the Irish economy compare favourably with European and international peers. The OECD for example, in its recently published Economic Outlook, is projecting modified domestic demand growth of 1.8 per cent for Ireland this year, compared to GDP growth of 0.9 per cent for the euro area.
The outlook for the international economy appears to be less pessimistic than had been assumed last year, with the OECD and others having revised up growth forecasts for this year. However, projections for GDP growth globally and in Ireland’s main trading partners are weak by historical standards. Furthermore, there is considerable uncertainty surrounding the outlook for both the domestic and international economy and significant risks remain.
The Government is steadfast in its commitment to creating an environment for further FDI through investment in key infrastructure and skills, while maintaining our strong legal and regulatory landscape into the future.
