John Perry
Ceist:47 Mr. Perry asked the Minister for Finance if, in the event of the economy slowing down, he will bring forward policies to ensure a soft rather than a hard landing; and if he will make a statement on the matter. [27981/00]
Written Answers. - Fiscal Policy.
The Irish economy should continue to grow strongly over the next five years, albeit at a slower pace than in the recent past. With unemployment below 4%, a lack of available labour, in conjunction with infrastructural constraints which cannot be resolved overnight, will slow economic growth over time.
The timing and extent of this slowdown is, of course, difficult to forecast. Developments in the international economy and, in particular, the performance of the euro in the period ahead will be crucial factors. Price and wage developments are also important. To ensure a so-called soft-landing for the economy we must continue with the policy mix that has been so successful in the past. The maintenance of social partnership, prudent budgetary policies and sensible pay evolution are essential if we are to achieve a gradual slowdown.
In the absence of external shocks – over which governments have no control – I am confident that, with the correct policies, we can sustain growth and achieve this so-called soft-landing for the economy.