Ireland: Economy expands moderately in Q3
December 18, 2012
In the third quarter, GDP grew 0.2% over the previous quarter in seasonally adjusted terms. The reading was below both the 0.4% increase observed in the second quarter (previously reported: 0.0% quarter-on-quarter) and market expectations that had GDP expanding 0.7%. On an annual basis, the economy rose 0.8% over the same quarter the year before (Q2: -1.1% year-on-year).
Domestic demand improved significantly compared to the previous quarter, as fixed investment swung from a 15.4% contraction in the second quarter to a 8.5% rise in the third, while private consumption expanded 0.5% (Q2: -0.1% qoq). Government consumption, on the other hand, fell 0.3% (Q2: -3.8% qoq).
On the external side of the economy, exports rebounded from a 0.4% decrease in the second quarter to a 0.3% increase in the third. Simultaneously, imports rose 2.1% (Q2: -5.4% qoq). As a result, the external sector's net contribution to GDP growth deteriorated from plus 4.0 percentage points in the second quarter to minus 1.3 percentage points in the third.