Enda Kenny (Mayo, Fine Gael) | Oireachtas source

First, the figures produced yesterday are unprecedented. They do not reflect accurately what is happening in the economy. Obviously, the figure of 26% is unprecedented and significantly stronger than the previous estimate of 7.8%, but it is important to note that is due to exceptional factors. It highlights the complexity and difficulty in interpreting the macroeconomic data in Ireland. The figures reflect a number of factors, including the impact of relocation of entire plcs to Ireland. This would have significantly boosted investment and net exports. Net exports contributed 18% to the 2015 growth figure. Contract manufacturing played a role in the figures. This occurs where an Irish-based company with another manufacturing unit abroad manufactures and sells products to other countries from that unit but is still based in Ireland.

While the headline figures can be exaggerated in an Irish context and will obviously be the subject of intense scrutiny, other indicators such as the level of consumer spending, the rise in the level of employment and the continuous drop in unemployment trends, as well as taxation receipts, confirm that there is a strong recovery rooted in the domestic economy in Ireland. That domestic demand - spending by Irish businesses and Irish people - is also growing strongly. It is an opportunity arising from the many sacrifices made during the years.

The figures predate the decision in Britain in the referendum. Obviously, there has been a sharp depreciation of sterling since that decision and a deterioration in the outlook for the UK economy. While it is an unprecedented figure, the fact is, based on growth projections in real terms, the growth levels seen in 2015 were both a one-off and exceptional in nature. We cannot make policy on that basis, but the CSO takes into account in compiling its figures issues such as aircraft leasing and manufacturing here by companies that have units abroad. As noted in the summer economic statement which was debated in the Dáil some time ago, the Department of Finance will prepare a full macroeconomic projection in advance of the budget in October. It will include updated estimates of economic growth, the public finances and whatever fiscal space is available to the Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, taking account of developments up to that time, including the latest CSO numbers and the decision in the United Kingdom.

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