Dáil Éireann Debate, Thursday - 9 December 2021
174. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment his vision for the recovery for the economy notwithstanding national or international factors; and if he will make a statement on the matter. [61063/21]
Amharc ar fhreagraThe COVID-19 pandemic has caused unprecedented disruption across all sectors of the economy and all regions of the country. However, despite this disruption, the Irish economy has shown remarkable resilience. Using the latest quarterly national accounts data from the CSO, the economy grew by approximately 14.5% in GDP terms in the first nine months of 2021 compared with the equivalent nine months of 2020. While growth in 2020 was predominantly driven by activities in the multinational sector, growth in 2021 was much more broad-based, with domestic activity rebounding swiftly this year as the economy opened up. Robust growth in the domestic and multinational sectors is expected to continue in 2022, with the Department of Finance forecasting grow of 5.0% in GDP terms, while Modified Domestic Demand is estimated to grow by 6.5% next year.
The Economic Recovery Plan (ERP) published in June 2021, sets out the Government’s medium-term economic plan to rebuild Ireland’s economy. As well as committing to a package of supports and investments to assist enterprise recovery, the Plan outlines a medium-term policy framework to rebuild sustainable enterprises, encourage job creation and sustainable and balanced post pandemic growth.
The past 18 months have been difficult for most businesses, and some sectors continue to be impacted by public health restrictions. Last Friday's announcement regarding restrictions was a bitter blow for many businesses. Throughout the pandemic my Department and its enterprise agencies have engaged with and supported businesses within their remit and are continuing to do so as we face the current challenge of significant case numbers across the country.
The ERP set a target to exceed pre-crisis employment levels by having 2.5 million people in work by 2024 and in more productive and resilient jobs. There has been considerable recovery in employment across the economy in recent months with employment standing at 2.35 million (seasonally adjusted) although this is likely to be impacted by the latest restrictions required to protect public health.
The Plan adopts a two-pronged recovery approach to rebuilding sustainable enterprises; supporting the domestic SME sector, which is critical to broad-based jobs-led economic growth, whilst leveraging the enormous strength of the Foreign Direct Investment (FDI) sector. It aims to create an environment for a jobs-led recovery through a focus on expanding sectors and by helping business become more resilient and agile.
The pandemic has accelerated digital transformation and catalysed new drivers of growth. Growing pressures and the increasingly obvious physical realities of climate change are requiring more ambitious commitments to climate action. Reflecting the importance of the green and digital transition, the ERP and related strategies commit to driving a step change in the adoption of digital, AI and other new technologies by Irish businesses, as a critical driver of enterprise productivity and competitive advantage and to supporting enterprise on its decarbonisation pathway. The ERP also includes a commitment to develop a National Clustering Policy and Framework to fully realise the economic potential from clustering. Clusters are now a major part of the industrial landscape internationally and an important policy instrument in driving the green and digital transitions and economic growth. Clustering is also a focus for both IDA Ireland and Enterprise Ireland to support their client companies and leverage synergies and spillovers.
Innovation, collaboration, and knowledge are the cornerstone of a sustainable growth model to ensure the country is equipped to embrace new and emerging opportunities. The education, training and research sectors will be supported to shift up a gear to rise to the challenge and our skills framework and architecture will be further strengthened to ensure people are supported to secure and remain in sustainable and quality employment through opportunities to reskill and upskill.
