Ireland: GDP records sharpest contraction since Q4 2020 in Q4
GDP declined at a sharper rate of 3.4% on a seasonally adjusted quarter-on-quarter basis in the fourth quarter, below the 2.5% contraction recorded in the third quarter. Q4’s reading marked the worst result since Q4 2020.
Household spending recorded flat growth in the final quarter, which was below the third quarter’s 0.7% expansion. Government consumption growth moderated to 1.2% in Q4 (Q3: +2.3% s.a. qoq). Meanwhile, fixed investment bounced back, growing 65.4% in Q4, compared to the 3.5% decrease recorded in the prior quarter. On the external front, exports of goods and services dropped at a slower pace of 1.0% seasonally adjusted quarter on quarter in the final quarter, which marked the best reading since Q3 2022 (Q3: -2.6% s.a. qoq). Meanwhile, imports of goods and services bounced back, growing 14.6% in Q4 (Q3: -1.7% s.a. qoq).
On an annual basis, economic activity dropped 8.7% in Q4, following the previous period’s 5.8% contraction. Q4’s reading marked the sharpest contraction since Q4 2008.