Ireland: Second reading shows GDP actually shrank in Q2
The economy contracted 1.0% in seasonally adjusted quarter-on-quarter terms in Q2, according to a second national accounts release, instead of growing 1.2% as had been estimated in the preliminary reading. This contrasted with the downwardly revised 0.6% expansion seen in the prior three months (preliminary reading: +0.7% s.a. qoq).
On an annual basis, GDP contracted 4.0% in Q2 (preliminary reading: +1.4% yoy), a smaller shrinkage than the previous period’s 4.7% contraction and marking the best result in a year.
Looking at breakdown of the quarter-on-quarter reading, household spending increased 1.1% in the second quarter, which was above the first quarter’s flat reading. In addition, government consumption rose 1.5% (Q1 2024: -0.8% s.a. qoq). However, fixed investment plummeted 65.1% in Q2, marking the worst reading in four years (Q1 2024: -40.4% s.a. qoq).
On the external front, exports of goods and services accelerated, growing 12.1% in Q2, which marked the best reading since Q4 2020 (Q1 2024: +7.3% s.a. qoq). Conversely, imports of goods and services rebounded, expanding 4.7% (Q1 2024: -6.2% s.a. qoq).