Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I welcome Professor McHale and his colleagues and commend them on their comprehensive report. To return to the issue of the domestic economy and employment, I note an interesting figure on the outturn for 2012 showing that growth in GNP was significantly higher than growth in GDP. This is not usually the case in Ireland. Real GNP growth in 2012 was 3.4%, whereas real GDP growth was 0.9%. This leads one to believe there are issues with the domestic economy. I ask Professor McHale to comment.

Higher growth is forecast in GDP than GNP in 2014. The projections in the budget were for 1.5% growth in GDP and 0.9% growth in GNP, which is a reversal of the outturn in 2012. Why is this the case?

Consumption declined in 2012 and projections from the Government, ESRI, Central Bank, European Commission and International Monetary Fund all indicate consumption will decline in 2013. Projections on investment vary, with some of the forecasts indicating growth while others indicate a contraction will occur. What are the witnesses' views on the performance of the domestic economy? I ask them to respond in the context of investment and to decouple the international and domestic economies. How will we secure significant employment growth? I ask them to respond in the context of President Barroso's comment on austerity.