Oireachtas Joint and Select Committees

Tuesday, 6 October 2015

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Macroeconomic Forecast for 2016: Department of Finance

5:45 pm

Mr. John McCarthy:

Let me give one example. If world growth was 1% higher over a period of two or three years, the level of GDP in Ireland would be 1% higher as well. The elasticity is almost one for one. That is a kind of roundabout way of answering the Deputy's question. As growth is now stronger in advanced economies that is one tailwind and it is boosting ours by x%. One can quantify it and some of the other factors as well, such as the exchange rate. We have not published model simulations here but one can certainly do it. I do not have the figures.

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