Beyond that, growth in the Irish economy could begin to move towards its long run sustainable potential rate of about 4 per cent. However, this recovery is not guaranteed without concerted action. To ensure a sustainable recovery in growth back towards potential, it is important to focus on some key areas under our own control.
These include the public finances, the efficiency and effectiveness of public spending, particularly in relation to increasing the productive capacity of the economy, and overall competitiveness. The slowdown in economic activity is impacting on the fiscal position.