Bernard Durkan (Kildare North, Fine Gael)
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342. To ask the Minister for Finance the extent to which he expects his economic projections to remain on target throughout the course of 2017; if any particular issues have emerged or are likely to emerge in this regard; and if he will make a statement on the matter. [1964/17]

Michael Noonan (Limerick City, Fine Gael)
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The most recent economic forecast prepared by my Department was published as part of Budget 2017, which projected real GDP growth of 3.5 per cent in 2017.

Domestic demand is set to drive growth once again this year with positive contributions expected from both consumption and investment spending.

The recent dataflow has been encouraging showing that the strong momentum has continued: 

- The economy expanded by 6.9 per cent year-on-year and by 4.7 per cent on average in the first three quarters of 2016.

- Exports are holding up well despite the weakness in sterling. In particular, service exports have been very strong recording double-digit growth in the third quarter year-on-year.

- The volume of retail sales increased by 4.3 per cent year-on-year in November 2016. Core sales (excluding motor trades) were up by 4.9 per cent over the same period.

- New cars licensed for the first time were up 17.8 per cent in 2016 compared to 2015.

- Expansion in the construction sector continued in November with the Purchasing Managers' Index for the sector recording its thirty-ninth successive month of expansion.

On the basis of this data, the economy remains on course to grow by 3.5 per cent this year.

Updated macroeconomic forecasts will be published by my Department, as part of the Stability and Programme Update, in April this year.