Bernard Durkan (Kildare North, Fine Gael)
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63. To ask the Minister for Finance the extent to which he remains satisfied that this economy remains competitive in all aspects; and if he will make a statement on the matter. [51311/17]

Bernard Durkan (Kildare North, Fine Gael)
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64. To ask the Minister for Finance the degree to which he expects the State's economic performance to continue; and if he will make a statement on the matter. [51312/17]

Bernard Durkan (Kildare North, Fine Gael)
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65. To ask the Minister for Finance the extent to which he remains satisfied that all fundamental economic indicators remain positive with particular reference to future growth prospects; and if he will make a statement on the matter. [51313/17]

Bernard Durkan (Kildare North, Fine Gael)
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66. To ask the Minister for Finance the extent to which he remains satisfied that the State's competitiveness will remain in tact globally; and if he will make a statement on the matter. [51314/17]

Bernard Durkan (Kildare North, Fine Gael)
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67. To ask the Minister for Finance the degree to which he and his Department continue to monitor the impact of Brexit on all aspects of this economy; and if he will make a statement on the matter. [51315/17]

Bernard Durkan (Kildare North, Fine Gael)
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68. To ask the Minister for Finance the degree to which his Department continues to monitor all aspects of the economy with a view to identifying those areas coming under pressure from Brexit or other influences; if particular measures are required in these circumstances; and if he will make a statement on the matter. [51316/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 63 to 68, inclusive, together.

Recent economic indicators have generally been positive, indicating that the recovery is continuing in a sustainable manner.  

Real GDP grew by 5.8 per cent in the second quarter of this year on an annual basis. This follows annual growth of 5.2 per cent in the first quarter.

Growth is broad based with both underlying domestic demand – stripping out the volatile components of investment – and net exports contributing positively to growth this year.

The strength of underlying domestic demand is being felt in the labour market. Employment growth remains strong with an annual rate of 2.4 per cent recorded in the second quarter of 2017, representing the creation of over 48,000 additional jobs over the year. The increase in employment remains broad based with gains recorded in 11 of the 14 sectors reported by the CSO. Since the low-point in 2012 there are now an additional 230,000 people in employment.

Recent data published indicate that:

- The volume of retail sales increased by 4.5 per cent year-on-year in October 2017. Core sales (excluding motor trades) were up by 6.0 per cent over the same period.

- Expansion in the construction  sector continued in October with the Purchasing Managers’ Index for the sector  recording its fiftieth successive month of expansion.

- The Consumer Sentiment Index was 104.8 in October, well above its long run average.

- The seasonally-adjusted monthly  unemployment rate for October was 6.0 per cent, down from 7.2 per cent in  October 2015.  As a result, the  unemployment rate has fallen by more than half since its peak of over 15 per cent in early-2012.

As part of Budget 2018, my Department is forecasting real GDP growth of 3.5 per cent next year, following growth of 4.3 per cent this year. The strong performance of the labour market is set to continue in the short term, my Department is projecting that an additional 48,000 jobs will be created next year. Strong employment growth is expected to further reduce the unemployment rate, to around 5 ½ per cent by the end of next year.

However, there are a number of risks at present, principally the UK’s decision to exit the EU. In addition, the sharp appreciation of the euro-sterling rate is posing significant challenges, particularly for the traditional sector, tourism sector and areas sensitive to cross-border trade. Notwithstanding the magnitude of these challenges, the main macroeconomic impact of the appreciation of the euro-sterling rate so far has been on the nominal side of the economy, with inflation remaining subdued despite a pick-up in the rest of the euro area. In particular, export growth has held up well despite the appreciation of the euro. Importantly, the largely indigenous food and beverage sector, for which the UK is an important export market, has proven resilient this year with the value of exports up 13.5 per cent in the first three quarters of 2017 on an annual basis.

However, there is no room for complacency as the full impact of Brexit is only expected to materialise over time. The Government has already taken important steps to prepare the economy, including in Budget 2017 and 2018, the Action Plan for Jobs 2017, and our Trade and Investment Strategy.

Significant progress has also been made in recent years in improving Ireland's competitiveness. 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 October 2017. However, the sharp appreciation of the euro-sterling bilateral rate is a reminder that forces beyond our control can turn against us. This is all the more reason why we must focus on the costs which we can influence.

In this regard, it is important that the public finances are managed in a prudent manner and that competitiveness-oriented policies are pursued so that the Irish economy is in the best possible position to weather economic shocks that may emerge.

In summary, I am satisfied that the economic indicators remain positive.  However, the full impact of the UK’s decision is yet to be seen. I am also conscious that the level of uncertainty is elevated at present. In this regard, it is critical that appropriate polices are implemented and that is what the Government will continue to do.