Fórsa said new CSO figures published today (Friday) demonstrate the need for Government to continue to stimulate the economy through income supports, business supports and investment in public services and infrastructure. The CSO data shows that domestic demand soared when Covid-19 restrictions were eased in the third quarter of 2020.
The country’s biggest public service union said the figures underlined the need for Government to reject austerity in its approach to public finances, and instead give people – particularly those on low incomes – the hope and confidence that will help the economy bounce back when the Covid situation stabilises.
These figures are further, encouraging evidence of the need for Government to reject an austerity approach to public finances, which would sap confidence from our economic biosphere.
The union’s general secretary Kevin Callinan said: “These figures are further, encouraging evidence of the need for Government to reject an austerity approach to public finances, which would sap confidence from our economic biosphere.
“If we give people hope, we will also give them confidence to spend and participate in the economy and in their communities. This is the lifeblood that can quickly rejuvenate businesses – be they large, medium or small. And it’s the route to rapid employment, economic and fiscal recovery, which must be grasped in all sectors of the economy – public, private and community.”
Fórsa is currently involved, with other unions, in talks on a successor to the PSSA public service agreement, which expires at the end of the year. Speaking at the union’s conference last month (19th November), Mr Callinan acknowledged that any successor to the PSSA would have to be realistic in the context of a challenging economic and fiscal situation, but said this didn’t mean ruling out pay improvements over the lifetime of a deal.
All the economic projections point to a rapid economic and fiscal bounce-back once the Covid situation stabilises, and we have cause to hope that will start to happen in the coming months.
“All the economic projections point to a rapid economic and fiscal bounce-back once the Covid situation stabilises, and we have cause to hope that will start to happen in the coming months,” he said.
The CSO figures for the July-September 2020 period, during which Covid restrictions were eased considerably, showed:
- Personal spending on goods and services grew by over 21%
- Underlying domestic activity increased by almost 19%
- The distribution, transport, hotel and restaurants sector saw grew by 47%
- Exports of goods and services increased by almost 6%.