Q1 growth higher than expected

Growth over the first quarter of the year was much higher than expected on the back of robust exports, but domestic consumption continues to drag.

GDP grew by 2.7% over the first three months and 4.1% on a year-on-year basis, according to figures released by the Central Statistics Office. Unless there is a significant economic shock then, based on current figures, the Government should be able to meet the 3% fiscal deficit target for 2015 through a lower consolidation package than the planned €2bn.

This is the first time that the GDP figure has been calculated using the new EU Commission methodology that includes the “black economy”.