Dáil Éireann Debate, Thursday - 10 November 2016
119. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the economy continues to remain competitive when compared to other competing jurisdictions within the European Union and without; and if he will make a statement on the matter. [34275/16]
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 between its peak in 2008 and September 2016.
The gains in Irish competitiveness achieved since 2008 have been hard won through productivity improvements and wage and price moderation. It is important that this competitiveness is preserved and continues to support growth. 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 address emerging uncertainties.
