Bernard Durkan (Kildare North, Fine Gael)
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55. To ask the Minister for Finance the extent to which current economic indicators remain in line with best practice; the extent to which this is likely to generate positive economic activity over the next five years; and if he will make a statement on the matter. [13591/15]

Michael Noonan (Limerick City, Fine Gael)
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First estimates of economic activity for 2014 show that real GDP rose 4.8 per cent in 2014 compared with 2013.  GNP rose by 5.2 per cent. Domestic demand grew on an annual basis for the first time since 2007.  Both private consumption and investment contributed to this growth. Exports rose by 12.6 per cent annually in 2014.  This was the fastest rate of expansion since 2001. Exports are now at an all-time high. Based on data published to date, Ireland was the fastest-growing economy in the EU in 2014.

Other data released recently have provided room for encouragement. Consumer spending was strong in 2014 with the volume of retail sales up by over 6 per cent when compared with 2013.  Core sales (excluding motor trades) were up by close to 4 per cent in 2014.  This trend has continued into 2015. Headline sales were up 8.2 per cent in February with core sales up by 4.5 per cent year-on-year.

Investment is also growing, with both construction activity and machinery and equipment spending on a rising path.  Recovery in the construction sector continued in February with the Purchasing Managers' Index for the sector recording its eighteenth successive month of expansion. The euro has depreciated considerably on a trade-weighted basis since last summer. This is a positive development for the Irish export sector.

The improvements in the real economy are being reflected in the labour market. Total employment grew by 1.5 per cent (+29,100) over the year to Q4 2014, marking a ninth successive quarter of employment growth.  This was driven by increases in full-time employment and was broadly-based, with gains recorded in 11 of the 14 sectors reported by the CSO.  The unemployment rate continues to fall from the peak of 15.1 per cent in early 2012, but still remains high at 10.1 per cent in February this year.

My Department published its latest macroeconomic forecasts in October with Budget 2015 in which GDP is expected to expand by 3.9 per cent in 2015 and 3.4 per cent in 2016. Annual average growth of just over 3 per cent is expected in the following years.  Revised forecasts will be published with the Spring Economic Statement next month and these will take into account the latest data and developments at that point.