· IBEC, Central Bank and ESRI reports all predict Ireland’s continuing growth this year
· New €500,000 Government fund for aviation and manufacturing sectors
· $16m collaboration announced between Mayo Clinic and Enterprise Ireland
· As two new tourism initiatives are announced, survey shows half of tourists plan to return to Ireland
· Claremorris to be Ireland’s first first broadband town connecting all businesses
Other Economic developments
The ESRI report on Friday forecast that GDP will expand by 2.6 per cent this year; GNP is forecast to increase by 3.5 per cent. On these figures it suggested Budget cuts may not be necessary for 2015. Please note the following:
· There are clear signs that the Irish economy is well on the road to recovery with all forecasters pointing to strong growth this year
· The focus and priority that this Government has given to getting the economy working and creating jobs is bearing fruit and this is evident in today’s ESRI forecasts. We have kept an intense, coordinated focus on this through Action Plan for Jobs & Pathways to Work. We made budgetary decisions like the 9% VAT rate and the abolition of the travel tax which have been welcomed by industry and have led to new jobs being created.
· Jobs are the number one priority and with 5,000 on average jobs being created each month (61,000 last year) and unemployment falling for 21 consecutive months, the ESRI are forecasting strong jobs growth and a drop in unemployment to 10%
· The Government’s strategy as outline in the MTES to is to reduce the deficit to below 3% by 2015 and to create full employment by 2020.
· The next Government forecasts will be published next week (Draft SPU to be published subject to gov approval)
· The October Budget will be based on the most up to date economic and fiscal data available at the time
· It is worth remembering that budget must be based on Irish Fiscal Advisory Council endorsed economic forecasts
· It is too early to start discussing Budget 2015.