Bernard Durkan (Kildare North, Fine Gael)
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179. To ask the Minister for Finance the extent to which Ireland's economic development compares favourably with other European countries within the eurozone, notwithstanding the impact of Brexit; and if he will make a statement on the matter. [13649/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The CSO’s preliminary estimate for full-year GDP growth in 2017 is 7.8 per cent. According to Eurostat, the statistical office of the European Union, in 2017 the EU and euro area economies grew by 2.4 per cent and 2.3 per cent respectively. This would suggest that Ireland was the fastest growing economy in the EU in 2017. While the 2017 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. Other indicators such as consumer spending, labour market trends and taxation receipts confirm Ireland’s strong economic position.

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 4.4 per cent in 2018 and 3.1 per cent in 2019. This compares with growth of 2.3 per cent this year and of 2.0 per cent next year for the EU and the euro area respectively. The Commission notes that consumer spending and construction investment are forecast to drive GDP growth in the short-term. Strong employment growth, particularly for full-time jobs, should underpin a rise in disposable income and household consumption over the next two years.

My Department will publish updated forecasts with the Stability Programme Update 2018 in April. Given the strength of activity last year, growth forecasts for this year are likely to be revised upwards.

However, economic challenges remain, mainly linked to the outcome of the negotiations between the EU and the UK and the potential changes to the international taxation and trading environments. The best way to deal with the challenges we face, and to support continued economic growth, is through continued implementation of productivity-oriented policies along with sustainable public finances. That is what this Government will continue to do.