Irish gross domestic product (GDP) grew by 6.4 per cent in the first quarter of this year when compared with the same period of 2022 but it was down 2.7 per cent when compared with the previous quarter, according to preliminary figures from the Central Statistics Office (CSO).
The fall in GDP – which captures the activity of multinational companies operating here – versus the previous quarter was “driven mainly by a fall in the industry sector ... from very high levels in the second half of 2022″.
These figures are subject to revisions in the Quarterly National Accounts, which are due to be published in early June, the CSO said.
Minister for Finance Michael McGrath said the contraction in activity versus the previous quarter was “likely related to the globalised activities” of multinational companies.
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“Production and exports are notoriously volatile on a quarterly basis,” he said.
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He noted that a more reliable measure for domestic economic activity was modified domestic demand data, which is due in the CSO’s next release.
“Last week, my department published its spring forecasts as part of the stability programme update. Despite inflationary pressures, Ireland’s economy has proven to be remarkably resilient. The labour market continues to perform strongly, with an unemployment rate close to record lows, while consumer spending continues to expand. Incoming data relating to the domestic economy, namely jobs numbers, construction activity, and tax receipts point to a solid start to the year,” he said.
“Looking ahead, as inflationary pressure eases, real household disposable income is set to recover and will support consumer spending growth, while the fading of the energy price shock should also support higher capital spending by firms.”
