Exit from recession will help return to markets

Ireland exited a double-dip recession by posting 0.4% GDP growth over the second quarter compared with a 0.6% contraction over the first three months of the year, according to figures released by the CSO.

The figures will be watched closely by investors as Ireland attempts to make a full exit from the EU/IMF bailout programme in November. Even though the growth rate is anaemic, most economists expect the recovery to gain momentum over the second half of this year and into 2014.

The rebound was helped by a healthy pick-up in consumption, which grew by 0.7% compared with the previous quarter. Investment, including the volatile aircraft sector, contracted by 3.4% over the second quarter compared with the first three months. However, building and construction spending is now up by 11.3% on the year and machinery and equipment, excluding aircraft, is up by 11.8%.