Dáil Éireann Debate, Tuesday - 4 April 2017
90. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied regarding the ongoing progress of economic recovery; if he has identified particular issues requiring further attention; if he has satisfied himself that the economy remains well placed to maximise its potential, including job creation in the future; and if he will make a statement on the matter. [16427/17]
Amharc ar fhreagraIn general, recent indicators have been very positive, indicating that the economic recovery is continuing at a robust pace. The preliminary estimate for full-year GDP growth in 2016 is 5.2 per cent based on National Accounts data for the fourth quarter of the year.
Importantly, domestic demand made a strong positive contribution to growth in 2016 with consumption increasing by 3.0 per cent in 2016. This is crucial as domestic sectors are both jobs-rich and tax-rich. What's more, the exporting sector appears to be holding up reasonably well despite the weakness in sterling.
The economic recovery is perhaps most clearly evident in the labour market where we have now had seventeen successive quarters of employment growth. Employment in the fourth quarter of 2016 increased by 3.3 per cent year-on-year, equivalent to 65,100 new jobs. The number of people in employment has exceeded the 2 million mark since Q2 2016 and is now at its highest level since Q4 2008. Encouragingly, the seasonally adjusted unemployment rate fell to 6.6 per cent in February, down from a peak of over 15 per cent in 2012.
However, there are several sources of uncertainty which could negatively impact on the economic outlook. In particular, the UK's decision to leave the EU has added to concerns about the international outlook while the change in policy direction by the new US administration has also added to concerns about the international economy. Weaker than expected trading partner growth would negatively impact on Irish growth through reduced exports.
This uncertainty highlights the importance of prudent management of the public finances and of competitiveness-oriented policies that would help the Irish economy to weather any global economic downturn that may emerge.
In summary, I am confident that significant economic progress can be made in the years ahead. However, this is critically contingent upon implementing appropriate polices and that is what the Government intends to do.
