The initial 2% estimate for Irish GDP growth in the third quarter was revised up to 3.5%, with the second quarter figure also revised higher. As a result the annual change in GDP was 2.9%, the first positive figure since the final quarter of 2022. It is also now likely that the average growth rate in 2024 will be marginally positive following a 5.5% contraction last year.<\/p>\n\n\n\n
The quarterly growth figure was driven by a big rebound in capital formation, in turn due to a recovery in spending on R&D by the multinational sector, recorded as Intangibles. Construction spending also rose, by 4.5%, which supported modified capital formation growth of 5.2%. Modified domestic demand also rose in the quarter, by 1.3%, and looks on course for average growth in 2024 of 3%.<\/p>\n\n\n\n
Service exports had been growing very strongly this year , driven by computer and business services, but the latter fell sharply in q3 and overall service exports fell 14% in the quarter, perhaps highlighting the company specific driver of quarterly volatility in external trade and capita formation. Exports in total fell 7% in the quarter, albeit still showing annual growth in excess of 10%.<\/p>\n\n\n\n
The other negative contribution to growth in q3 was personal consumption. The fall was modest, at -0.2%, but that followed weak figures in the first half of the year (+0.3% in both quarters). Upward revisions often occur and as sit stands the weakness is surprising give the fall in inflation this year and the strong rise in employment and household incomes.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The initial 2% estimate for Irish GDP growth in the third quarter was revised up to 3.5%, with the second quarter figure also revised higher. As a result the annual change in GDP was 2.9%, the first positive figure since the final quarter of 2022. It is also now likely that the average growth rate … Continue reading “Irish GDP returns to annual growth although consumer spending surprisingly weak”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-395","post","type-post","status-publish","format-standard","hentry","category-irish-gdp"],"_links":{"self":[{"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=\/wp\/v2\/posts\/395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=395"}],"version-history":[{"count":2,"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=\/wp\/v2\/posts\/395\/revisions"}],"predecessor-version":[{"id":397,"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=\/wp\/v2\/posts\/395\/revisions\/397"}],"wp:attachment":[{"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/danmclaughlin.ie\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}