Lockdown in Ireland tells a tale of two economies

Despite large falls in spending, Ireland's GDP has not declined to the extent expected

Household spending plummeted during lockdown but GDP has declined only slightly. Picture Dan Linehan

Household spending crashed during the Covid lockdown months but the hit to the economy as measured by GDP was mild compared with elsewhere in Europe, which "tells a tale of two economies", according to the Economic and Social Research Institute. 

Despite having one of the largest falls in household spending in Europe during the "lockdown’’, robust export growth in a small number of important sectors (computer services and pharmaceuticals) meant GDP did not decline in the first half of 2020 to the extent expected.