Brendan Howlin
Ceist:55 Mr. Howlin asked the Minister for Finance if he will make a statement on the Central Bank’s first quarterly review for 2004. [12978/04]
Amharc ar fhreagraThursday, 6 May 2004
Ceisteanna (64)
Freagraí scríofa
I can confirm to the Deputy that I have received the spring quarterly bulletin of the Central Bank and have taken note of its contents, in particular the economic forecasts. The Central Bank is forecasting GDP and GNP growth of 3¾% and 3¼% respectively this year. These forecasts are slightly higher than my own Department's budget day forecasts last December of 3.3% and 3%, for GDP and GNP respectively this year.
The bank forecast that inflation, as measured by the CPI, will average 2% this year. I very much welcome the continued moderation of the rate of inflation and the improved inflation outlook. I also agree with the bank that our competitiveness is a concern going forward, and that moderate pay increases are crucial if we are to improve our competitive position. However, I am confident that if we continue to manage our economy and public finances prudently we will continue to benefit from the emerging global economic recovery.