Bernard Durkan (Kildare North, Fine Gael)
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120. To ask the Minister for Finance the extent to which the economic fundamentals have stabilised in this economy; the extent to which specific targets have been met and are likely to continue to be met in this regard; if any particular issues have been identified which might assist economic growth and as a consequence employment; if specific targets have been identified in this regard; and if he will make a statement on the matter. [23890/13]

Michael Noonan (Limerick City, Fine Gael)
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The Government's long-stated goal is to return Ireland to a sound fiscal footing and, in doing so, generate long-term sustainable growth and employment creation. In this regard, I am pleased to report that developments over the last year have been reasonably encouraging. The Irish economy recorded a second successive year of growth last year and the underlying general government deficit - at 7.6 per cent of GDP - came in well within the ceiling of 8.6 per cent of GDP set by the ECOFIN Council in 2010. My Department expects an underlying deficit of 7.4 per cent of GDP this year, below the 7.5 per cent ceiling set in 2010. We remain on course to reduce the deficit below 3 per cent of GDP by 2015.

Encouragingly, domestic demand showed tentative signs of stabilisation in the second half of last year, with personal consumption increasing in each of the last two quarters and investment returning to full-year growth for the first time since 2007. While developments in the labour market have been relatively positive of late - with employment increasing over the last two quarters and the unemployment rate falling by 1 percentage point since February 2012 - a recovery in domestic activity remains a precondition for sustained employment growth. In this regard, it is encouraging to note that my Department is now forecasting domestic demand to return to modest full-year growth this year, and to strengthen gradually over the next few years. On this basis, employment is expected to return to modest growth in 2013 and to continue expanding thereafter.

Finally, I would like to emphasise that the Government remains committed to tackling the unacceptably high level of unemployment. Reflecting this, the Action Plan for Jobs 2013 set out over 333 actions to be undertaken in the coming year to support job creation and complement measures already untaken in the Jobs Initiative and the Pathways to Work.