Bernard Durkan (Kildare North, Fine Gael)
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Question 168: To ask the Minister for Finance the extent to which the various factors likely to affect growth in this economy have been identified and isolated with a view to specific or particular action likely to result in job creation; and if he will make a statement on the matter. [34825/11]

Michael Noonan (Limerick City, Fine Gael)
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As noted in the Medium-Term Fiscal Statement, my Department expects that the economy will return to growth this year following three successive annual contractions. The pace of the recovery is then expected to gradually strengthen in subsequent years, although anticipated GDP growth rates of 1.6 per cent in 2012 and 2.4 per cent in 2013 are weaker than those forecast in the spring. These downward revisions reflect a combination of external and domestic factors. For instance, it is now accepted that growth in our major trading partners is moderating, and this has led to a downward revision to the export growth forecast. The latest economic data, meanwhile, have revealed that the outlook for the domestic growth components is weaker than was the case in the spring.

Slower economic growth will, in turn, lead to a slower recovery in the labour market. A return to net employment creation is now expected to be delayed until the second half of next year and annual employment growth is not foreseen until 2013. The Government recognises that getting people back to work represents its biggest challenge, however, and will continue to take steps to improve the prospects of those out of work.