Irish Economy Returns to Growth in Q2

The Irish gross domestic product advanced by 2.5 percent on quarter in the three months to June of 2018, following an upwardly revised 0.4 percent contraction in the previous period. Personal consumption recovered, government spending went up faster and net trade contributed positively to GDP growth. In addition, fixed investment shrank less.

On the expenditure side of the accounts, household consumption increased 1.5 percent, after showing no growth in the previous three-month period and government spending rose at a sharper 1.3 percent (vs 0.4 percent in Q1). Also, net trade contributed positively to expansion, as exports surged 5.9 percent (-5.5 percent in Q1) while imports advanced only 0.3 percent (vs -3.6 percent in Q1). Meantime, fixed investment declined less (-1.4 percent vs -3.1 percent).

On the output side, industry made the largest positive contribution to the Q2 result, rebounding significantly (5.3 percent vs -9.4 percent in Q1), within which manufacturing also grew (5.0 percent vs -9.9 percent). Other important recoveries were seen in construction (3.2 percent vs -0.6 percent); distribution, trade, hotels & restaurants (3.9 percent vs -0.3 percent); finance and insurance activities (1.2 percent vs -1.2 percent); professional, administrative and support services (3.7 percent vs -2.2 percent). In addition, solid growth was recorded in information and communication (11.9 percent vs 11.3 percent). On the other hand, contractions were seen in agriculture (-3.4 percent vs -2.5 percent); arts and entertainment (-2.8 percent vs -3.8 percent); public administration, education, health (-1.1 percent vs 2.0 percent) and real estate activities (-0.1 percent vs 0.1 percent).

Compared with the same quarter of the previous year, the GDP expanded 9.0 percent, following an upwardly revised 9.3 percent advance in the previous period.

Irish Economy Returns to Growth in Q2

CSO | Luisa Carvalho |
9/13/2018 10:45:37 AM