Irish Economy Grew By 2.5% In Q2

13 Sep 2018 | 03.21 pm

Irish Economy Grew By 2.5% In Q2

CSO data says ICT output was up by 12%

13 Sep 2018 | 03.21 pm

The Irish economy grew by 2.5% through the second quarter of 2018, according to figures released by the Central Statistics Office.

The CSO data recorded Q2 growth in all of the larger sectors of the Irish economy.

Output in the ICT sector was up by nearly 12% compared with Q1 tallies, while industry output increased by 5%.

The distribution, transport, hotels and restaurant sectors grew by almost 4% in Q2, while the construction sector grew by 3%.

However, the agriculture, forestry and fishing sector recorded a decrease of 3.4% in the second quarter.

The CSO said that personal consumption of goods and service, which accounts for almost one-third of the economy in the quarter, rose by 1.5%.

Capital investment was down by 1.4% in Q2, which the CSO said is explained by lower levels of expenditure on machinery and equipment, and on intellectual property products.

Exports of goods and services grew by nearly 6% during the period, while imports increased by 0.3%.

In its commentary on the CSO Q2 figures, KBC’s Austin Hughes noted that Irish GDP data remains “a significantly compromised indicator of the economic conditions facing most Irish-based businesses and households”.

“However, the broad message of preliminary GDP numbers—that show GDP increased by 9% year on year in Q2 2018— is consistent with a range of other data and points towards an Irish economy that is performing solidly, and where an improvement, even if uneven in pace, is being more broadly felt,” Hughes continued.

“The recorded improvement in domestic spending in today’s GDP release numbers as well as the particular strength of multinational activity mean we are raising our forecast of GDP growth for 2018 as a whole from 6% to 7%.

“Either out-turn would mean that Ireland seems set to be the fastest growing economy in the EU for the fourth year in five.”

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