Finance: Competitiveness of Irish Economy 28th February 2013
28th February 2013 - Bernard Durkan TD
DÁIL QUESTION NO 96 and 97
To ask the Minister for Finance the extent to which the competitiveness of the economy has improved when compared with other EU economies; and if he will make a statement on the matter.
– Bernard J. Durkan.
* For WRITTEN answer on Thursday, 28th February, 2013.
Ref No: 10921/13
To ask the Minister for Finance the extent to which the competitiveness of the Irish economy continues to maintain its position with our major trading partners with particular reference to the effect of currency fluctuation; and if he will make a statement on the matter.
– Bernard J. Durkan.
* For WRITTEN answer on Thursday, 28th February, 2013.
Ref No: 10922/13
REPLY
Minister for Finance ( Mr Noonan) : I propose to take questions 96 and 97 together.
Substantial progress has been made in terms of improving our competitiveness. Relatively lower price inflation in recent years means that Irish price levels have fallen relative to our major trading partners. For instance, in 2012 HICP inflation for Ireland was 2.0 per cent, lower than the euro area average of 2.5 per cent. This trend looks set to continue into this year, with HICP for January at 1.5 per cent in Ireland compared with a rate of 2.0 per cent for the euro area as a whole. Indeed Ireland’s HICP inflation rate has now been below or on par with the euro area average for every month since May 2008.
At the same time there has been a significant improvement in economy-wide cost competitiveness. Indeed, the European Commission recently forecast that our nominal unit labour costs will improve by 23 per cent relative to those in the euro area over the period 2008 – 2014.
The recent appreciation of the exchange rate against both sterling and the dollar is unhelpful. However, it must be seen in the context of the relative improvement in prices and costs – in other words, variables that we can exert some influence over.
Bernard Durkan TD
Kildare NorthBernard J Durkan is the Fine Gael spokesperson on Public Expenditure, NDP Delivery and Reform. Originally from Killasser, Co Mayo,…
Related news
Sinn Féin reach new low exploiting Covid diagnosis in Dáil vote
Fine Gael’s most senior TD, Bernard Durkan, has said Sinn Féin have displayed a terrible lack of decency and reached…
12th July 2022Agency should be tasked with monitoring alleged price gouging by service providers – Durkan
A government agency should be tasked with monitoring price increases across utility and service providers to ensure fairness and transparency…
24th June 2022Questions remain about National Lottery’s new 'must-win' prize game – Durkan
The National Lottery’s newly announced ‘must-win prize’ is an acknowledgement that the 6-month rollover is unsustainable, but questions remain regarding…
15th December 2021