The era of exceptionally strong Irish growth is now over and a new round of structural change is needed to maintain a strong economic position, Central Bank Governor John Hurley said today.
He made his comments at a Central Bank and Financial Services Authority of Ireland conference on the economy in Dublin today. The conference is entitled 'Prospects for Productivity and Growth in Ireland and the Euro Area'. It is focusing on the medium to long-term growth potential of both Ireland and the euro zone.
'Ireland has undergone very high levels of structural change and the results have generally been beneficial,' Mr Hurley said as he opened today's conference.
'If we had simply tried to maintain the production structure of the past, with its greater concentration on lower-value added traditional activities, it is implausible to suggest that the economy could have performed in the manner that it has,' he added.
Mr Hurley said further structural change was now needed if Ireland was to maintain and improve its relative position. He cautioned that growth has become somewhat unbalanced in recent years, with an unusually high reliance on the construction sector, combined with some deterioration in the economy's export performance.
The Central Bank Governor said that the importance of research is clear. 'Productivity growth is the key driver of living standards in the long run. Determining what is important in terms of promoting productivity growth constitutes a key challenge for economic research,' he added.
Other speakers at the conference today include UCD Professor Frank Barry, the Bank of England's Rob Hamilton and Alan Murphy, Kieran McQuinn and Karl Whelan from the Central Bank.
