Economic signs are slightly more encouraging

NEWS that the economy expanded 0.5% on a GDP basis and 1.1% on a GNP basis in the third quarter of the year compared to the second quarter is the latest piece of encouraging data published recently on our economy.

Labour force figures published earlier in the month show the unemployment rate had fallen to 13.2% by November from a peak of 13.7% in July. Meanwhile, exchequer returns show tax receipts rose 6.6% in the three months to November.

Thus, despite all the gloom and another very severe budget, there are rays of light in the Irish economy. However, the GDP data confirms that a two-tier economy has emerged. The export sector is booming while the domestic sector remains in deep recession.