Jim O'Keeffe (Cork South West, Fine Gael)
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Question 39: To ask the Minister for Finance his views on the exposure of the economy to reversals in the housing market; and if he will make a statement on the matter. [2582/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In the past number of years there has been a sharp increase in housing output and it has become a highly significant sector of the economy. In 2003, housing construction accounted for just over 10% of GNP. A gradual easing back of housing output is envisaged in the coming years, although this is expected to be offset by other components of building and construction, assisted by a continuation of a strong public capital programme, as well as a continuation in the pick up in other investment. Most commentators believe that the Irish housing market is underpinned by strong economic fundamentals and favourable demographics which must also be taken into account.