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Economic Competitiveness

Dáil Éireann Debate, Wednesday - 20 July 2011

Wednesday, 20 July 2011

Ceisteanna (74)

Thomas P. Broughan

Ceist:

78 Deputy Thomas P. Broughan asked the Minister for Finance if he is concerned by the apparent disconnect between Irish savings and investment as outlined in recent Central Bank and Department reports; the way he proposes to address this issue to kickstart Irish economic recovery; and if he will make a statement on the matter. [21708/11]

Amharc ar fhreagra

Freagraí scríofa

The household savings rate in Ireland is currently at a high level relative to its historical average. This reflects the need to repair household balance sheets, the uncertain external environment, weak labour market conditions and concern surrounding forthcoming budgets. My Department forecasts that the savings rate will remain at a relatively high level over the coming years but with a gradual moderation over the forecast horizon (2011-2015) as confidence returns to the economy. One of the major obstacles holding back investment in the Irish economy is lack of confidence and certainty about our future. This Government has acted swiftly and resolutely to rebuild this confidence. We have stabilised the public finances and recapitalised the banking system and are vigorously implementing the terms of the EU/IMF agreement which will see our deficit fall below the 3 per cent of GDP target by 2015. In addition there have been significant improvements in our competitiveness, and this has contributed to a recovery in our exports and a pick up in inward Foreign Direct Investment, which underpinned the expansion of GDP in the first quarter of the year.

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