Minister Donohoe welcomes Q2 GDP numbers confirming continued momentum in the economy

13th September, 2019

Friday 13th September 2019

  • In the second quarter of 2019, real GDP rose by 0.7 per cent relative to the previous quarter, and was 5.8 per cent higher than the same period a year earlier.
  • Personal consumption grew at a solid rate of 3.1 per cent year-on-year, consistent with employment growth and tax receipts.
  • The level of exports exceeded €100 billion for the third successive quarter.
  • Modified (final) domestic demand (proxy for domestic economy) up 2.9 per cent year-on-year

The CSO today (Friday) released the Quarterly National Accounts for the second quarter of 2019.  Commenting on the figures, Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD said:

“Overall, today’s figures are consistent with an economy that is continuing to grow. While annual growth in GDP remains strong, growth in the domestic economy is moderating to more sustainable levels, with modified domestic demand up 2.9 per cent year-on-year. More broadly, the figures are very much in line with a range of other indicators such as employment growth and taxation receipts.  For instance, the level of employment increased by 63,000 (+2.8 per cent) on average in the first half of the year while, more recently, tax revenues were up 8 per cent to end August 2019.”

“Overall growth in the economy continues to be broad-based, with positive contributions from both the domestic and multinational sectors. The level of exports exceeded €100 billion for the third successive quarter. On the domestic side, household consumption was up 3.1 per cent year-on-year, while investment in housing increased by 11.4 per cent, reflecting a much needed pick-up in supply which has contributed to the recent moderation in house prices.”

“Early indications suggest solid growth in the third quarter as well, particularly in light of the monthly unemployment rate of 5.2 per cent recorded in August. Overall, we are seeing continued improvements in living standards.” 

“Against this, there is a continued softness in the international environment, particularly in the manufacturing sectors in some of our closest trading partners. The risk of a no-deal Brexit hangs over the economy, with business and consumer confidence softening as a result. As the Government outlined this week, the impact on the most-exposed sectors of the economy from a disorderly Brexit could be very severe. 

Careful management of the economy and of the public finances is needed now more than ever in order to chart our way forward through the uncertain times ahead. This is why we are planning the Budget on the basis of a no-deal Brexit; this is the safest approach”