Irish Economy Grows 0.6% in Q2

The Irish economy expanded 0.6 percent in the quarter in the three months to June 2016, recovering from a 2.1 percent contraction in the previous period, as capital formation rebounded sharply. Meanwhile, government expenditure advanced at a slower pace, household spending fell slightly and net external demand contributed negatively.

On the expenditure side, capital formation, which accounts for approximately 35 percent of domestic demand, rose by 38.9 percent (-14.4 percent in Q1) and government expenditure increased 0.6 percent (+2.6 percent in Q1). By contrast, personal consumption declined by 0.5 percent (+0.7 percent in Q1). Net Exports declined by 31.4 percent with the import increase of 11.8 percent (-10 percent in Q1) outpacing the change in exports which were broadly unchanged at -0.1 percent (-3.6 percent in Q1). 

On the output side of the accounts, value added for all sectors increased in the quarter with the exception of manufacturing which was broadly unchanged (-8.7 percent in Q1). There was an increase of 5.2 percent in the building and construction sector (+2 percent in Q1).  The distribution, transport, software and communications sector increased by 1.7 percent (+6.6 percent in Q1) with the other services sector increasing by 1.6 percent (+1.6 percent in Q1). Agriculture rose by 1.5 percent (-2.5 percent in Q1) while public administration and defence recorded an increase of 1.3 percent (+2.2 percent in Q1).

Compared to the same quarter of the previous year, the economy expanded 4.1 percent after growing by an upwardly revised 3.9 percent in the previous period.

Irish Economy Grows 0.6% in Q2

CSO | Joana Ferreira |
9/14/2016 10:20:38 AM