Monday, May 20, 2024

Irish economy returned to growth in first quarter

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The economy as measured by Gross Domestic Product (GDP) returned to growth in the first quarter, expanding by 1.1% between January and March when compared to the last three months of last year.

That is according to an early estimate from the Central Statistics Office, which also found GDP was 0.8% lower when compared with the first quarter of 2023.

The growth between the end of last year and the start of this year was driven mainly by an increase in the information and communication sector, the CSO said.

If confirmed, the growth would be a positive turnaround from the 3.4% contraction in GDP between October and December.

GDP also fell in the third quarter of last year, by 2.5%.

But the CSO also cautions that these preliminary GDP estimates are based on forecasting and data sources that are limited in scope when compared with those used for compiling GDP in the CSO’s Quarterly National Accounts and are therefore likely to be revised.

GDP is not generally considered a great indicator of the underlying health of the Irish economy, because it includes distorting effects related to the activities of multinational firms.

Economists typically prefer to look at other measures such Modified Domestic Demand, which provide a more accurate picture of the of the performance of the domestic economy.

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