Bernard Durkan (Kildare North, Fine Gael)
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Question 117: To ask the Minister for Finance the discussions he has had with EU colleagues on the issue of economic recovery throughout the eurozone; the extent to which various concepts and methods have been examined, pursued or adopted; if such measures are likely to take cognisance of the needs of smaller open economies; and if he will make a statement on the matter. [14424/11]

Michael Noonan (Limerick City, Fine Gael)
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At our regular meetings, my fellow European finance ministers and I discuss the economic situation in the eurozone and in individual Member States. Such discussions draw on the work of the various technical and policy committees that feed into the Council. At these meetings, we explore all available avenues that will accelerate economic recovery across the Euro zone. An example of this is provided by the 'Euro-Plus Pact' aimed at improving competitiveness and the fiscal rules of Member States. Competitiveness is a fundamental pillar of economic growth for any small economy such as Ireland and is an area in which we are actively seeking to improve to boost our growth prospects.

My ministerial colleagues are aware of the importance of promoting an environment that will foster growth in Ireland. Our aim is to develop a common understanding of Ireland's economic strategy and repeat that our core strengths remain – modern infrastructure, well-educated workforce, favourable demographics and a pro-enterprise business environment.

Our European partners recognise that Ireland is actively pursing an economic programme aimed at restoring sustainable economic growth, underpinned by a healthy banking sector and sound public finances.

I will remain in regular contact with EU colleagues for the foreseeable future to continue our ongoing work in pursuing the eurozone's economic recovery.

Bernard Durkan (Kildare North, Fine Gael)
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Question 119: To ask the Minister for Finance the discernible trends emerging in respect of economic growth throughout the current year and thereafter; the factors most likely to affect this; the extent to which he has in mind measures to respond; and if he will make a statement on the matter. [14426/11]

Michael Noonan (Limerick City, Fine Gael)
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The Irish economy is expected to return to growth this year. On the back of a strong export performance, my Department is forecasting that GDP will grow by around 0.75% in 2011 and 2.5% in 2012. In the second half of 2010 we witnessed some easing in the annual rate of decline of GDP activity. Exports are expected to continue supporting economic activity over the medium-term, with a gradual pick-up in domestic demand also foreseen as the recovery broadens out and spills over to the labour market. For the period 2013-15, the economy is forecast to grow by 3% per annum on average. Unemployment is forecast to increase further this year, to around 14.5%. While the numbers out of work should start to decline next year and gradually come down over the medium-term, the unemployment rate is projected to stay high over the forecast horizon.

The unprecedented turmoil that the Irish economy is still going through means that there is a lot of uncertainty surrounding macroeconomic projections at this time and a number of risks to this outlook have been identified as recently as the end of April in the Irish Stability Programme Update. These risks include the speed of balance sheet repair, fiscal consolidation and credit availability. The balance of risks in respect of these domestic factors is largely to the downside. On the other hand, risks to the outlook for net exports are to the upside.

The Government is taking positive steps to shore up economic activity exemplified by delivering a number of innovative policies and structural reforms as outlined in the Programme for Government and the Jobs Initiative. These should assist in supporting economic activity in the period ahead.

The Department of Finance's GDP forecast for 2011 is broadly in line with that of the European Commission (0.6%), the Central Bank (0.9%) and the IMF (0.6%). In fact, the most recent Reuters consensus forecast for GDP growth has been revised upwards. Furthermore, I note that the ESRI recently published a forecast of 2% for GDP growth in 2011.