Dáil Éireann Debate, Thursday - 29 September 2016
91. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that Ireland remains a competitive economy and is attractive to indigenous investors and foreign direct investors; and if he will make a statement on the matter. [28001/16]
Amharc ar fhreagraSignificant progress has been made in recent years in improving Ireland's competitiveness. The latest figures from the Central Bank of Ireland, show that Ireland's real harmonised competitiveness indicator (a widely used measure of competitiveness in Europe) has improved by over 20 per cent since 2008.
The gains in Irish competitiveness achieved since 2008 have been hard-won through productivity improvements and wage and price moderation. These gains, along with the stabilisation of the public finances, have helped ensure that Ireland remains an attractive location for investment. Indeed, rapid growth in both domestic and foreign direct investment in recent years is testament to investor confidence in the Irish economy.
As a small open economy it is essential that we remain a competitive, strategically important location for trade and investment as we work to expand our exports and continue to build the foundations for a solid and sustained recovery going forward. In this regard we must be cognisant that favourable exchange rate movements can reverse, as can be seen for example in the recent strengthening of the euro against sterling. Similarly gains from the fall in oil prices may unwind in the future. This highlights the importance of maintaining competitiveness-oriented policies to help weather emerging uncertainties.
