Bernard Durkan (Kildare North, Fine Gael)
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78. To ask the Minister for Finance the extent to which this country’s economic performance is likely to benefit from the post-bailout environment; and if he will make a statement on the matter. [2114/14]

Michael Noonan (Limerick City, Fine Gael)
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The ending of the programme of external financial assistance will help to further enhance confidence as it clearly demonstrates that we have moved to the next stage of our recovery.

The restoration of confidence in the Irish economy will have tangible benefits in terms of supporting domestic demand. In this regard the successful completion of the programme in December 2013 has had a noticeable impact on confidence domestically. Consumer confidence, as measured by the ESRI/KBC Consumer Sentiment Index three-month moving average, has increased for eight consecutive months, reaching very high levels in December.

In addition to this, the recent Quarterly National Accounts release from the CSO showed double digit year-on-year growth in investment in the third quarter – a clear sign that confidence is returning to businesses domestically. Indeed core investment (excluding the volatile aircraft component) has seen strong year-on-year growth in each of the last three quarters. Business expectations for both investment and employment – as measured by Ibec and ISME respectively – both improved in the latter half of 2013.

Further improvements in confidence are important and will continue to support the on-going recovery in the Irish economy, in particular domestic demand.