Irish GDP Expands 2.7% in Q4, Beats Forecast

The Irish economy advanced 2.7 percent on the quarter in the three months to December of 2015, following an upwardly revised 1.5 percent expansion in the previous quarter and staying way above market consensus of 0.9 percent. Personal consumption and net exports were the main drivers of growth while capital investment increased at a slower pace.

On the expenditure side, personal consumption, the largest component of domestic demand, expanded by 1 percent following a 0.9 percent growth in Q3; and overall net exports rose, as export growth during the quarter of 3.4 percent (+2.6 percent in Q3) was outpaced by import growth of 2.5 percent (+5.4 percent in Q3). Capital formation increased by 2.9 percent easing from a 4.8 percent growth in the previous quarter. By contrast, government expenditure continued to drag the expansion down shrinking by 1.4 percent (-1.8 percent in Q3).

On the production side, there was an overall increase of 6.4 percent in the industry sector, including building and construction where a 1 percent increase was recorded. The other services sector increased by 1.1 percent and public administration and defence rose 0.7 percent. Meanwhile, the distribution, transport, software and communications sector shrank 0.2 percent and agriculture, forestry and fishing recorded a quarterly decrease of 1.1 percent.

Year-on-year, the economy advanced 9.2 percent, compared to an upwardly revised 7.2 percent in the previous period and hitting the highest value since the first quarter of 2001.

Considering full 2015, the GDP advanced 7.8 percent, as capital formation rose strongly by 28.2 and personal consumption rose by 3.5 percent, while government expenditure exhibited a slight decline over the same period (-0.8 percent). Total domestic demand increased by 9.3 percent in 2015 compared with 2014. Overall net exports for the year was little changed. On the production side, value added of industry rose by 13.7 per cent, with manufacturing recording a 14.2 percent increase and building and construction recording an 8.8 percent increase. The distribution, transport, software and communications sector increased by 8.7 percent while the agriculture sector increased by 6.4 percent, and other services by 4.3 percent. Public administration and defence recorded an annual decline of 2.6 percent.

Irish GDP Expands 2.7% in Q4, Beats Forecast

CSO | Joana Ferreira |
3/10/2016 12:18:07 PM