Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

219. To ask the Minister for Finance the extent to which he remains satisfied that Ireland remains a competitive economy and attractive to indigenous investors and foreign direct investors; and if he will make a statement on the matter. [16738/17]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

225. To ask the Minister for Finance the extent to which he expects this economy to maintain positive performance over the next four years; if he anticipates any corrective measures arising from external factors; and if he will make a statement on the matter. [16744/17]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 219 and 225 together.

In general, recent indicators have been very positive, indicating that the economic recovery is continuing at a robust pace. The preliminary estimate for full-year GDP growth in 2016 is 5.2 per cent based on National Accounts data for the fourth quarter of the year.

Importantly, domestic demand made a strong positive contribution to growth in 2016 with consumption increasing by 3.0 per cent in 2016. This is crucial as domestic sectors are both jobs-rich and tax-rich. What's more, the exporting sector appears to be holding up reasonably well despite the weakness in sterling.

An important factor in strong export performance is competitiveness. In this regard, significant progress has been made in recent years. The latest figures from the Central Bank of Ireland, show that Ireland's real harmonised competitiveness indicator (a widely used measure of competitiveness in Europe) has improved by over 20 per cent between its peak in 2008 and February 2017.

The gains in Irish competitiveness achieved since 2008 have been hard-won through productivity improvements and wage and price moderation. It is important that this competitiveness is preserved and continues to support growth. This is all the more important given the several sources of uncertainty which could negatively impact on the economic outlook. In particular, the UK's decision to leave the EU has added to concerns about the international outlook while the change in policy direction by the new US administration has also added to concerns about the international economy. Weaker than expected trading partner growth would negatively impact on Irish growth through reduced exports.

In summary, I am confident that significant economic progress can be made in the years ahead. However, this is critically contingent upon implementing appropriate polices and that is what the Government intends to do.