Paschal Donohoe (Dublin Central, Fine Gael)
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Overall our economy is in good shape and economic growth is expected to continue this year and through the medium term, as the Stability Programme Update has recently illustrated. The IMF’s World Economic Outlook, published this month shows that Irish GDP is projected to grow by 1½% in 2024. Irish GDP is forecast to continue to grow over the medium term.

This is supported by a credible approach to managing spending in the medium-term while maintaining the freedom to respond appropriately to short-term challenges. This includes the management of expenditure within their ceiling and the related allocations voted by Dáil Éireann, and within the terms of the sanction provided by the Minister for Public Expenditure, NDP Delivery and Reform, by every Department and Minister. This is underpinned by monthly monitoring of expenditure against profiled spend as published in the Fiscal Monitor.

One of the best barometers of the health in the economy is the labour market. The strong growth in employment over the last number of years has continued into this year. Employment is forecast to grow by 1.9% in 2024, by 1.5% in 2025 and 2026 and 1.1% in 2027.

Recent unemployment figures from the CSO imply an unemployment rate of 4.4% for the first quarter of 2024, compared with 4.5% in Q4 2023. The Stability Programme Update has forecast unemployment to remain around this level (4.6%) for 2024, rising to 4.7% for 2025 and out to 2027. This shows a continuation of the recent trend of strong high employment levels.

Public service pay has been governed by a system of collective agreements since the Croke Park Agreement was negotiated in 2010. Multi-year public service agreements have contributed to stability within our economy by facilitating ongoing reforms and the maintenance of industrial peace in the public service.

Public service transformation remains a key priority for Government. The Agreement will underpin the ongoing transformation of our public services, allowing reform to continue in a collaborative and cooperative way. This is supported by the key national reform plans, strategies and frameworks.