Minister Donohoe welcomes CSO data confirming continued robust growth in the Irish economy

  • In the second quarter of this year, real GDP rose by 2.5 per cent relative to the previous quarter; as a result the level of economic activity was 9.0 per cent higher than the second quarter last year.
  • Modified domestic demand – a better proxy for the domestic economy – grew by 6.3 per cent year-on-year.
  • The average annual growth rate in the first half of this year was over 9 per cent.

The CSO today (Thursday) published national accounts estimates for the second quarter of this year. Commenting on the figures, Minister for Finance and Public Expenditure & Reform, Paschal Donohoe T.D. said:

“Today’s figures are very strong showing that the Irish economy grew by 9.0 per cent in annual terms in the second quarter of this year. While the headline GDP figures can overstate activity in the Irish economy, domestic measures such as modified domestic demand clearly indicate that the economy continues to perform strongly.

In particular, I note the acceleration in consumption growth to almost 4½ per cent and continued double-digit growth in building and construction investment.

The strength of the domestic economy is also reflected in full-time employment growth of over 4 per cent as well as tax receipts to end-August which increased by over 5 per cent compared to the same period last year.

My Department forecast real GDP growth of 5.6 per cent for this year in the Summer Economic Statement. The next set of macroeconomic projections will be published with the Budget in mid-October.

While the economic situation remains favourable at present we must remain vigilant. The Irish economy faces a number of significant risks including the potential fallout from Brexit, increasing trade protectionism and potential overheating as the economy approaches full employment. Careful management of the public finances is needed in order to chart our way forward through the uncertain times ahead.”

Ends

Contact:

Deborah Sweeney [Press Adviser to Minister Donohoe] – 086 858 6878

Aidan Murphy [Press Officer, Department of Finance] – 085 886 6667

Press Office pressoffice@finance.gov.ie – 01 676 0336