Ireland: GDP growth in Q2 downgraded
According to a revised reading, GDP rebounded 0.5% on a seasonally adjusted quarter-on-quarter basis in Q1 (preliminary reading: +3.3% qoq s.a.), above the 2.6% contraction recorded in Q1.
Private consumption increased 0.9% in the second quarter, which was above the first quarter’s flat reading. Public consumption rebounded, growing 4.3% in Q2 (Q1: -3.9% s.a. qoq). Fixed investment also rebounded, growing 5.2% in Q2, contrasting the 17.5% decrease in the previous quarter.
On the external front, exports of goods and services contracted 4.1% in Q2, marking the worst reading since Q2 2020 (Q1: -1.7% s.a. qoq). Conversely, imports of goods and services rebounded, growing 0.1% in Q2 (Q1: -3.7% s.a. qoq).
On an annual basis, economic activity contracted 0.7% in Q2, contrasting the previous quarter’s 1.1% expansion. Q2’s reading marked the largest downturn since Q3 2016.