Strong economic performance puts Ireland on track to meet growth rate of 7.5% by year end - Donohoe
- In the third quarter of this year, real GDP rose by 0.9 per cent relative to the previous quarter; as a result the level of economic activity was 4.9 per cent higher than the second quarter last year.
- Modified domestic demand – a better proxy for the domestic economy – grew by 4.1 per cent year-on-year.
- The average annual growth rate in the first three quarters of this year was 7.5 per cent.
The CSO today (13th December) published national accounts figures for the third quarter of this year. Commenting on the figures, Minister for Finance, Paschal Donohoe T,D, said:
“In keeping with recent quarters, today’s figures are strong and show that the economy grew at a rate of 4.9 per cent in annual terms in the third 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 continued robust consumption growth of almost 3.0 per cent and continued double-digit growth in building and construction investment, of which investment in housing grew by 26 per cent, reflecting the continued efforts of the Government to increase housing supply.
“The strength of the domestic economy is also reflected in employment growth of 3.0 per cent in the third quarter, as well as tax receipts to end-November which increased by 7.6 per cent compared to the same period last year.
“My Department forecast real GDP growth of 7.5 per cent for this year in Budget 2019. Today’s numbers are consistent with this projection.
“While the economic situation remains favourable at present we must remain vigilant. The Irish economy faces a number of significant risks, in particular the potential fallout from Brexit, with the probability of a no-deal Brexit having risen of late, as well as 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.”
Note to editors
Modified domestic demand is the sum of consumption by households and government and investment by the public and private sector excluding investment in aircraft by the leasing sector and intangible assets produced overseas.