Oireachtas Joint and Select Committees

Thursday, 19 June 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Fiscal Assessment Report 2014: Irish Fiscal Advisory Council

2:45 pm

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour) | Oireachtas source

Professor McHale answered Deputy Spring on the adjustment resulting in a reduction of €1 billion in GDP. There is also a confidence shock for the ordinary punter, which affects whether they spend or save their money. Would he agree that at this stage an adjustment of €2 billion could undermine GDP by a far greater figure than €1 billion?

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