Bernard Durkan (Kildare North, Fine Gael)
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234. To ask the Minister for Finance the extent to which this country's economy continues to compete with all others within and outside the eurozone; and if he will make a statement on the matter. [21784/23]

Bernard Durkan (Kildare North, Fine Gael)
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235. To ask the Minister for Finance the extent to which this country's economy remains competitive with other traders throughout Europe, the eurozone and globally; and if he will make a statement on the matter. [21785/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 234 and 235 together.

International data suggests that the outlook for the global economy may not be as pessimistic as had been thought at the end of last year. Resilient labour markets, an earlier than anticipated easing in headline inflation and effective government supports for firms and households have mitigated against some of the worst effects of multi-decade high inflation seen across most advanced economies. Nonetheless, it is clear that we are not out of the woods yet. Significant risks remain around geopolitical tensions and the stability of the financial sector, which my Department will continue to monitor.

Against the backdrop of a marginally improved global outlook combined with a resilient domestic economy, my Department revised upwards its growth forecasts for this year in the spring forecasts published in the Stability Programme Update last month. Indeed, the resilience of the domestic economy can be seen in an unemployment rate of just 3.9 per cent in April, with almost 2.6 million in employment - a record high. The easing of domestic headline inflation from 9.6 per cent in June to 6.3 per cent in April will act to boost consumption and investment, though core inflation (excluding energy) is projected to remain elevated at 4.4 over the course of the year.

My Department is now forecasting modified domestic demand (MDD) growth of 2.1 per cent for this year, an upward revision from 1.2 per cent forecast at the time of the autumn forecasts. MDD growth of 2½ per cent is projected for 2024. This level of growth compares relatively favourably to our European and global peers. In the recently published World Economic Outlook, the IMF forecast economic growth of 0.8 and 1.4 per cent for the Euro area for this year and next, with a projected contraction in the UK economy of -0.3 per cent this year, before returning to positive growth of 1 per cent next year. The US economy is projected to grow by 1.6 per cent this year and by 1.1 per cent in 2024.