CSO reports slight rise in GDP
GDP grew slightly during the third quarter according to new figures from the Central Statistics Office.
The latest Quarterly National Accounts, which were published this morning, indicate that on a seasonally adjusted basis there was a 0.2 per cent increase in Gross Domestic Product (GDP) from July through to September, while Gross National Product (GNP) decreased by 0.4 per cent.
Compared to the same quarter last year, GDP increased by 0.8 per cent, while GNP was up by 3.7 per cent.
Distribution, transport, software and communication registered the largest increase in volume, 12.8 per cent higher last quarter than the previous quarter.
GDP is the international method of calculating economic decline but in Ireland's case, the Economic and Social Research Institute (ESRI) and other local bodies prefer to focus on GNP (Gross National Product) a measure which strips out multinational profits, much of which usually leave the country.
Personal expenditure increased by 0.2 per cent in volume in the third quarter compared with the same quarter in 2011. Net exports increased by €598 million in Q3 compared with the same quarter of last year.
The GDP data for the first three quarters of 2012 suggest that the Irish government's 0.9 per cent growth target for the year as a whole should be met and could possibly be above 1 per cent for the second year running, a decent performance all things considered, Merrion economist Alan McQuaid said.
"Strong television sales in October for the digital switchover and wine purchases in December ahead of the €1 excise duty increase are likely to see another positive contribution from personal spending in the final quarter, though the contribution from net external trade is likely to be weaker than in July-September," he added.