Bernard Durkan (Kildare North, Fine Gael)
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33. To ask the Minister for Finance the extent to which he remains satisfied regarding Ireland's growth potential for the future in comparison with all other EU states within the euro zone and without notwithstanding Brexit or shifting geopolitical positions; if particular positional changes are required to maximise Ireland's potential ; the way in which Ireland now compares economically with its EU neighbours in terms of economic performance; and if he will make a statement on the matter. [23570/17]

Michael Noonan (Limerick City, Fine Gael)
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According to Eurostat, the statistical office of the European Union, Ireland was the fastest growing economy in the EU in 2016.  Real GDP growth in Ireland was 5.2 per cent in 2016 compared with real GDP growth in the EU economy and euro area economy of 1.9 per cent and 1.8 per cent, respectively. Domestic demand made a strong positive contribution to growth in 2016 while on an underlying basis i.e. excluding contract manufacturing, both goods and service exports recorded very strong growth despite the weakness in sterling. While the 2016 outturn is based on preliminary quarterly data which is highly volatile and prone to revision, the numbers provide clear evidence of continued momentum in the economy and are consistent with strong employment growth.

According to the European Commission, Ireland is also expected to be among the fastest growing economies in Europe this year and next. The European Commission expects Ireland's economy to grow by 4.0 per cent this year and by 3.6 per cent next year. This compares with growth of 1.9 per cent this year and next for the EU and with growth of 1.7 per cent this year and 1.8 per cent next year for the euro area. From 2019 onwards, my Department expects GDP to grow by just under 3 per cent per annum on average which is broadly in line with the potential growth rate of the economy with positive contributions from both exports and domestic demand.

The Government’s priority is to ensure continued, sustainable economic growth in order to further increase living standards and reduce unemployment. With regard to Brexit and other external risks to the outlook, the best way to deal with such risks is through competitiveness oriented policies and prudent management of the public finances. That is what this Government will continue to do.