Oliver Mangan: GDP figures mask difficult year for Ireland's domestic economy

The economy started to emerge from lockdown in April and all the signs are of an exceptionally strong rebound in domestic activity since then

Retail sales rose by 10% in the second quarter, leaving them 5.3% above their pre-pandemic levels. File picture: Larry Cummins

The Irish economy weathered the global recession caused by the Covid-19 pandemic better than most, thanks to a robust performance by its multinational sector that saw exports rise by 9.5% last year. The latest CSO data show GDP increased by 5.9% in 2020, with GNP increasing by 3.4%.

However, this masks a very difficult year for the domestic sector, with modified final domestic demand contracting by 4.9%, largely driven by a 10% fall in consumer spending. The domestic economy, though, did stage a good recovery in the second half of the year.