Dáil Éireann Debate, Thursday - 5 October 2023
222. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which any particular economic features require amendment or refocus in order to avoid difficulties in the future; and if he will make a statement on the matter. [43448/23]
View answerDespite facing multiple headwinds over recent years, the Irish economy has proven to be remarkably resilient. This resilience is most clearly evident in the labour market with the unemployment rate remaining around historically low levels (4.1 per cent in August). This is consistent with the robust growth in modified domestic demand and consumer spending recorded in the second quarter (roughly 1 per cent quarter on quarter).
Government supports have played a key role in helping to weather the impacts of recent economic shocks. By responding swiftly and decisively to the inflationary challenge and providing €12bn in cost of living supports, over the course of this year and last, Government has helped mitigate the impact of inflationary pressures on both businesses and households.
Over the medium term, it is anticipated that the Irish economy will face a number of significant challenges, related to economic features of our society, with a lower growth outlook expected in the second half of the decade due to the rapid ageing of our labour force. Indeed, by 2030, age-related expenditure alone is expected to be €7-8 billion higher than it was at the start of the decade, while other structural changes including digital and climate transitions will also have implications for the economy and the public finances.
The Government is taking steps to ensure that adequate safety measures are in place to protect the fundamentals of the Irish economy as we face the aforementioned economic features and any other obstacles that may arise. A scoping paper entitled Future Proofing the Public Finances – the Next Steps published by the Department of Finance outlined the merits of establishing a long-term public savings vehicle.
Through the National Development Plan, we are putting in place the vital public infrastructure to meet the needs of our society. With this ambitious expansion in capital infrastructure, the Government will boost the productive capacity of our economy and deliver much needed housing investment. This in turn will support long term and sustainable growth in our economy.
