Irish GDP Growth Beats Expectations in Q2

The Irish economy advanced 1.9 percent on quarter in the three months to June, following an upwardly revised 2.1 percent expansion in the previous quarter and way above market expectations. Capital formation was the main driver of growth while personal consumption increased at a slower pace.

On the expenditure side, capital formation increased by 19.2 percent (-1.7 percent in Q1) and personal consumption, the largest component of domestic demand, expanded by 0.4 percent (+0.7 percent in Q1). By contrast, government expenditure shrank 0.7 percent (-1.5 percent in Q2) and overall net exports for the quarter were broadly unchanged.

On the production side, value added increased for all sectors. There was an overall increase of 4.2 percent in the industry sector, including building and construction where a 2.4 percent increase was recorded. The distribution, transport, software and communications sector increased by 2.9 percent and agriculture, forestry and fishing grew by 2.8 per cent. Also, public administration and defence recorded an increase of 0.5 percent and the other services sector registered growth of 0.2 per cent.

Year-on-year, the economy advanced 6.7 percent, compared to an upwardly revised 7.2 percent in Q1, as capital investment, personal expenditure and public spending expanded by 34.2 percent, 2.8 percent and 1.7 percent, respectively. Meanwhile, net exports were €177m lower. On the output side of the accounts, gross value added in distribution, transport, software and communication increased by 11.4 percent. The industry sector (including building and construction) and other services both increased by 4.4 percent. By contrast, agriculture, forestry and fishing decreased by 1.2 percent and public administration and defence fell by 4.1 percent.

Irish GDP Growth Beats Expectations in Q2

CSO | Joana.ferreira |
9/10/2015 11:34:49 AM