Irish Economy Grows 1.4% in Q2

The Irish economy expanded 1.4 percent on quarter in the three months to June 2017, rebounding from an upwardly revised 3.5 percent contraction in the previous period and in line with market expectations. Fixed investment and government spending were the main drivers of growth, while household consumption shrank for the first time in four years and net exports contributed negatively.

On the expenditure side, capital formation, which accounts for approximately 35 percent of domestic demand, jumped 39.9 percent, after contracting by 38.1 percent in Q1. Also, government spending rose 0.6 percent, recovering from a 0.1 percent fall in the previous period. By contrast, household consumption, which accounts for almost half of domestic demand, shrank 1.1 percent, the first drop since the first quarter of 2013, following a 0.9 percent gain in Q1. Net exports decline by 31.4 percent due to a surge in imports (12 percent from -12.5 percent in Q1) while exports were unchanged (from -0.3 percent in Q1). 

On the output side of the accounts, value added of agriculture rose by 15.9 percent Q2 2017 compared with the previous quarter. Arts and entertainment recorded a 5.4 percent increase in real terms with professional and administration services recording a 5.1 percent advance. Financial services grew by 4.6 percent over the same period. All other sectors exhibited modest growth over the period with the exception of the real estate and construction sectors which recorded modest declines (-0.1 percent and -0.3 percent respectively).

Compared to the same quarter of the previous year, the GDP advanced 5.8 percent after growing by a downwardly revised 5.2 percent in the previous period.

Irish Economy Grows 1.4% in Q2

CSO | Joana Ferreira |
9/15/2017 10:27:03 AM