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Economic Growth

Dáil Éireann Debate, Tuesday - 30 January 2018

Tuesday, 30 January 2018

Ceisteanna (172, 175)

Bernard Durkan

Ceist:

172. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which Ireland's economic indicators remain positive; if particular issues here have emerged; and if he will make a statement on the matter. [4632/18]

Amharc ar fhreagra

Bernard Durkan

Ceist:

175. Deputy Bernard J. Durkan asked the Minister for Finance if he will compare Ireland's economic growth with the economic performance in other EU states within and outside the eurozone; and if he will make a statement on the matter. [4636/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 172 and 175 together.

According to EUROSTAT, in 2016 Ireland was the second fastest growing economy in the EU with real GDP increasing by 5.1 per cent. Based on data for the first three quarters of 2017, Ireland was the fastest growing economy with real GDP up by 7.4 per cent, although the headline figures have been heavily influenced by the multinational sector.

Growth is broad based with both underlying domestic demand – stripping out the volatile components of investment – and net exports contributing positively to growth in the first three quarters of 2017.

The strength of underlying domestic demand is being felt in the labour market. Employment growth remains strong with full-time equivalent employment having increased by over 4 per cent in the third quarter of 2017.

Further, recent data published indicate that:

- The volume of retail sales increased by 6.8 per cent year-on-year in November 2017. Core sales (excluding motor trades) were up by 7.6 per cent over the same period.

- Expansion in the construction sector continued in November with the Purchasing Managers’ Index increasing to 56.7.

- The Consumer Sentiment Index was 103.2 in December, well above its long run average.

- The seasonally adjusted monthly unemployment rate for December was 6.2 per cent, down from 7.5 per cent in December 2016.  As a result, the unemployment rate has fallen by more than half since its peak of 16 per cent in early-2012.

In summary, the Irish economy is performing strongly. While there are considerable challenges, recent economic indicators suggest that the economy remains on course for continued strong growth this year.

Beyond the short term there are risks, most notably regarding Brexit and corporate tax changes and we must be cognisant of these.

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