Dáil Éireann díospóireacht -
Thursday, 12 Dec 1991

Vol. 414 No. 6

Written Answers. - Economic Statistics.

Ruairí Quinn

Ceist:

104 Mr. Quinn asked the Minister for Finance if he will outline (1) the estimate of GNP growth for 1992 which has been provided to his Department by the Central Bank (2) the minimum percentage growth in the economy which is now estimated to be required to produce 25,000 new jobs on an annual basis; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

The Central Bank's growth forecast for 1992 was published recently in its Winter Bulletin and is, therefore, on the public record. The bank forecasts that GNP will grow by 2 per cent next year.

There is no unique growth rate associated with any given rate of net employment growth. There are several reasons for this including (a) the sectoral distribution of economic growth and (b) the nature of employment growth, in particular the contribution of part-time employment to that growth.

The thrust of Government policy is to maximise the growth potential of the economy and to increase the employment intensity of growth. This Government, through its prudent fiscal and monetary policies, have achieved a low level of inflation and internationally competitive interest rates — essential requirements for sustainable growth. The sensible incomes policies which have been pursued have helped to improve our competitive position, thereby contributing to growth and employment. The increase in total employment of 36,000 in the 12 months to April 1990 clearly illustrates the employment growth potential of the economy resulting from these sound policies. Even this year, with economic growth low because of adverse international conditions, a range of indicators clearly supports the view that employment is holding up well in the non-agricultural sector.