Vasileios Madouros: Managing the macroeconomic trade-offs of increased investment in infrastructure

Remarks by Mr Vasileios Madouros, Deputy Governor of the Central Bank of Ireland, at the Irish Planning Institute Autumn Planning Conference, Dublin, 3 October 2024.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Good morning everyone.

Thank you for inviting me to take part in this year's conference. 

Meeting infrastructure needs, now and into the future, matters for people and businesses across the country. 

Earlier this year, the Central Bank's Commission (our Board) held one of our regular meetings in Cork. 

We used that opportunity to meet a number of businesses in the area, and hear first-hand about the economic issues that are high on their own agenda. 

I remember asking one of those businesses about the challenges they faced. There was no hesitation in the response: "Infrastructure, infrastructure, infrastructure".

This is a common theme expressed by companies operating in Ireland, whether domestic or foreign-owned. 

From a public policy perspective, high-quality infrastructure is a necessary foundation for achieving long-term, sustainable growth. 

It also plays a key role in determining quality of life and is an important enabler for ensuring that the gains of economic growth are shared broadly across the population.

So I thought I would use today's remarks to cover some of the macro-economic aspects of infrastructure. 

Current infrastructure needs

Let me start with the current economic context. 

Despite a number of large external shocks in recent years, the economy has proved remarkably resilient.