Sustainable investment crucial for Ireland's economic future
Central Bank of Ireland Deputy Governor Vasileios Madouros emphasized the critical need for increased domestic investment to secure Ireland's long-term economic success. Speaking in Dublin, he highlighted this as essential for navigating profound economic and societal shifts over the next decade.
Investment's role in future shifts
Deputy Governor Vasileios Madouros highlighted that despite Ireland's very strong economic growth over the past decade, investment in crucial domestic sectors has remained relatively subdued.
This trend contrasts with the profound economic and societal shifts Ireland, like many other nations, is set to face in the coming years.
Madouros identified higher investment as a common denominator for successfully navigating these future challenges.
He stated, "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.
" This implies a careful balancing act between immediate economic demands and long-term strategic development, ensuring that growth is not only robust but also resilient against future shocks.
Addressing infrastructure and fostering dynamism
Deputy Governor Madouros noted that Ireland's core infrastructure has become increasingly strained following a strong recovery from the financial crisis.
He emphasized that addressing these infrastructure needs is crucial for both citizens and businesses, and for the economy's long-term success.
In response, the government has outlined a significant planned increase in public investment over the next decade.
Madouros also highlighted the importance of higher investment by indigenous businesses to support innovation and productivity, thereby strengthening their contribution to the domestic economy.
He added that progress on the EU's Savings and Investment Union is critical for unlocking capital to facilitate this investment.
Achieving sustainable domestic investment will require careful fiscal choices, improved efficiency in investment delivery, and fostering indigenous business dynamism.