The policy must be expansive when the economy so requires and it does not pose a threat to inflation stability. Basically, if we have a contractive fiscal policy we are in a position to generate an expansion policy. However, we are clearly focused on the inflation rate and inflation expectations for the coming years.
The EU is our largest destination market accounting for around a third of our exports, while the US is also a crucial market at around one fifth of exports. With a relatively small domestic market, Ireland has largely pursued an export-led growth model in recent decades. However, this production structure makes Ireland vulnerable to supply-side constraints.