Increasing investment sustainably is key for Irish economy - Central Bank of Ireland Deputy Governor Vasileios Madouros

Central Bank of Ireland Deputy Governor Vasileios Madouros spoke at Technological University Dublin on the need to increase domestic investment over the next decade to support Ireland’s long-term economic success.

Looking back, Deputy Governor Madouros discussed how, despite very strong economic growth, investment in key domestic sectors has been relatively subdued over the past decade. Looking ahead, like many other countries, Ireland is facing profound economic and societal shifts in years to come, and a common denominator in terms of how we navigate them is higher investment.

Deputy Governor Madouros said: “Raising Ireland’s domestic investment rate is an opportunity to strengthen the foundations – and resilience – of our economy into the future. But it is not without trade-offs. It will require an orientation of economic policy that both enables higher investment and ensures that it happens in a sustainable – and sustained – manner.”

He added that amid a strong recovery from the financial crisis, our core infrastructure has become increasingly strained. “Addressing those infrastructure needs matters for people and businesses across the country, and for the long-term success of the economy,” said Deputy Governor Madouros. “In response to those shortfalls, the government has rightly outlined a significant planned increase in public investment over the next decade.”

The Deputy Governor also highlighted the importance of higher investment by indigenous businesses to support innovation, productivity and strengthen their contribution to the domestic economy. He said that progress on the EU’s Savings and Investment Union is critical to unlocking capital to facilitate investment.

Deputy Governor Madouros added that raising domestic investment sustainably will require careful fiscal choices, improvements in the efficiency of investment delivery, fostering indigenous business dynamism, as well as diverse and resilient financing.

Read full speech here.

ENDS

Further Information

Martin Grant: 086 078 7868 / [email protected]