Ireland's economy grew by 1.8% in second quarter

Ireland's Gross Domestic Product (GDP) grew by 11.1% year on year

Ireland's domestic economy expanded by 4.3% quarter-on-quarter. Picture: Damian Coleman

Ireland's economy continued to grow in the second quarter of the year with Gross Domestic Product (GDP) increasing by 1.8% in the period from April to June.

Figures released by the Central Statistics Office (CSO) show that GDP grew by 11.1% on an annual basis. Gross National Product (GNP) - a measure of economic activity that excludes the profits of multinationals - rose by 2.1%.

Ireland's domestic economy expanded by 4.3% quarter-on-quarter. However, consumers are expected to cut back on spending in the coming months as energy bills rise and the economic conditions become more challenging for households. 

Many sectors focused on the domestic market experienced increased levels of economic activity according to the CSO. The statistics body also noted that several industries fell into decline.

During the second quarter the construction sector grew by 2.7%, while growth of 1.5% was recorded in the distribution, transport, hotels and restaurants industry.

Yet, a decline of 0.3% was observed in the professional, administrative and support activities industry. Meanwhile, the finance and insurance industry and the agriculture, forestry and fishing sectors shrunk by 0.4% and 0.3% respectively.

Commenting on today's CSO figures, Minister for Finance Paschal Donohoe said they confirmed that the domestic economy rebounded strongly as Covid restrictions were finally removed.

“The robust consumer spending growth is also reflective of the buoyant labour market conditions, with a record level of well over 2½ million people at work. These trends are also in-line with strong growth in VAT and income taxes recorded so far this year."

However, he noted the challenging macroeconomic environment highlighting that "a number of indicators suggest that momentum has eased in the third quarter while the outlook over the coming quarters has weakened considerably".