Irish Economy Grows 2.5% In Q4

Ireland's gross domestic product advanced 2.5 percent on quarter in the three months to December 2016, easing from a 4 percent expansion in the previous period. Fixed investment and household consumption were the main drivers of growth while net exports contributed negatively, largely due to a jump in imports.

On the expenditure side, capital investment, which accounts for approximately 35 percent of domestic demand, jumped 85.7 percent (-1.5 percent in Q3); household consumption, which accounts for almost half of domestic demand, advanced 0.7 percent (the same as in Q3); and government expenditure increased 1.4 percent (0.9 percent in Q3). By contrast, net exports declined by 93.7 percent with the import increase (37.2 percent from -5.7 percent in Q3) outpacing the change in exports (4.9 from 2.4 percent in Q3). 

On the output side of the accounts, industry made the most positive contribution to growth, rising by 4.9 percent (3.5 percent in Q3), within which manufacturing recorded a 3 percent increase with building and construction recording a slight decline of 0.3 percent. Increases were also recorded in agriculture (2.3 percent from 2.4 percent in Q3) and public administration and defence (1.6 percent from -1.9 percent in Q3). Distribution, transport, software and communication declined by 1.1 percent (from 5 percent in Q3), while other services decreased by 0.8 percent (from 1.2 percent in Q3).

Compared to the same quarter of the previous year, the economy expanded 7.2 percent after growing by 6.2 percent in the previous period.

In 2016 as a whole, the GDP advanced 5.2 percent, slowing from a 26.3 percent growth in 2015. Capital formation rose strongly by 45.5 percent over the previous year; personal consumption rose by 3 percent; and government expenditure exhibited an increase of 5.3 percent. Meanwhile, net exports fell, as import growth of 10.3 percent outpaced that of exports at 2.4 percent. On the production side, building and construction recorded an 11.4 percent increase and manufacturing recorded a 1.8 percent increase. The distribution, transport, software and communications sector increased by 7.8 percent while the agriculture sector increased by 6.2 percent, and other services by 6.0 percent. Public administration and defence recorded an annual increase of 4.4 percent.

Irish Economy Grows 2.5% In Q4

CSO | Joana Ferreira |
3/9/2017 11:26:20 AM