Vol. 519 No. 5
151 Mr. Callely asked the Minister for Finance if he has satisfied himself with his Department's economic forecasts; the measures that can be taken to ensure the continued competitiveness of the economy; and if he will make a statement on the matter. [14384/00]
161 Mr. Durkan asked the Minister for Finance if he is satisfied that Ireland's economic performance is sustainable in the long-term; if any steps are necessary to ensure this; and if he will make a statement on the matter. [14507/00]
I propose to answer Questions Nos. 151 and 161 together.
My Department's economic forecasts were prepared in November 1999 for budget day. At that time growth in GNP of 7.4% was forecast for 2000. The latest information suggests that growth will be higher than this. My Department is updating its assessment of economic developments. This will be published in Economic Review and Outlook in the next few months.
Ireland's economic performance is sustainable, albeit not at the exceptional rates of growth we have experienced in recent years. The reduction in the supply of labour and the tightening labour market suggests that potential economic growth will be lower in the future. Achieving our potential requires that we maintain economic stability and invest in infrastructure and human capital. We must maintain moderate inflation and competitive wage increases; the key to this challenge is to ensure adherence to the terms of the new Programme for Prosperity and Fairness.
