Dáil Éireann Debate, Wednesday - 15 September 2021
182. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which investment in employment-creating sectors continues notwithstanding the impact of Covid-19 and Brexit; if he is satisfied that industry can look to the future with optimism; and if he will make a statement on the matter. [44175/21]
Amharc ar fhreagraIn 2020 the domestic economy, as measured by Modified Domestic Demand (MDD) which includes investment, fell by 4.9%, while in GDP terms the economy grew by 5.9%. The strong growth recorded in GDP terms was due to the impact of the multinational sector, with both pharma and ICT performing well.
As more of the economy has re-opened in recent months the domestic economy has now started to grow again. The latest available data shows that MDD grew by 8.4% in Q2 2021, which was helped by an increase in investment. This was the second highest quarterly growth rate on record, second only to the third quarter of last year, when the economy bounced-back after the first lockdown. As a result, MDD has now surpassed its pre-pandemic level.
This growth was broad based, with almost every sector in the domestic economy recording strong growth, with the information and communication sector (6.2%) and the construction sector (22.9%) recording particularly strong growth.
Looking forward, the Department of Finance have forecast that MDD will continue to record robust growth into 2022, and expect it to increase by 7.4 percent next year.
The Economic Recovery Plan sets out through its four pillars how the Government will navigate the immediate recovery, and also the fundamental and accelerating challenges and opportunities the country faces. The plan will help build resilient, productive and profitable businesses that will attractive investment and create employment.
The steps taken by the Government in recent months and the measures outlined in the Economic Recovery Plan means we can be optimistic about building a more inclusive society and a more resilient, sustainable economy.
