I propose to take Questions Nos. 49, 265, 272 and 275 together.
My Department's most recent economic forecasts were published with Budget 2017. Real GDP growth of 3.5% was projected for this year while growth is forecast to average 3% over the period 2018-2021.
The dataflow since the Budget has been encouraging indicating that the strong momentum has continued:
- The economy expanded by 6.9% year-on-year in the first three quarters of 2016.
- Exports are holding up well. Service exports have been particularly strong recording double-digit growth, year-on-year, in the third quarter.
- Employment in the fourth quarter of 2016 grew by 3.3% on an annual basis - an increase of over 65,000 jobs.
- Data for 2017 is likewise encouraging with the unemployment rate for January falling to 6.8%, down from 8.6% a year earlier.
On this basis, the economy remains on course for continued strong growth this year.
However, we do face considerable economic challenges, notably Brexit, the change in policy direction by the new US administration, and growing uncertainty in the global economy. This was explicitly recognised in the economic outlook published with the Budget, which detailed risks to the outlook and noted that these are firmly tilted to the downside.
Budget 2017 introduced a number of measures aimed at making Ireland Brexit ready, including a number of measures to assist exposed sectors. Regarding investment, a new 10-year National Capital Plan will be put in place. In addition, as part of the recently launched Action Plan for Jobs 2017, there's additional funding for Enterprise Ireland and IDA Ireland to help Irish business export more and to attract new investment.
In conclusion I should emphasise that the best way to deal with the challenges we face, and to support continued growth is through continuation of the competitiveness oriented policies along with prudent management of the public finances that have worked so well. That is what this Government will continue to do.
