Ireland: GDP records sharpest contraction since Q4 2021 in Q3
GDP dropped at a quicker rate of 1.9% on a seasonally adjusted quarter-on-quarter basis in the third quarter, below the 0.4% contraction logged in the second quarter. Q3’s print marked the sharpest downturn since Q4 2021, and was a slight downgrade from the 1.8% contraction recorded in the preliminary reading.
Household spending growth slowed to 0.7% seasonally-adjusted quarter-on-quarter in Q3 compared to a 0.8% expansion in Q2. Government spending growth slowed to 1.7% in Q3 (Q2: +3.1% s.a. qoq). Meanwhile, fixed investment was down 3.7% in Q3, contrasting the 3.7% increase logged in the previous quarter. Exports of goods and services dropped at a more moderate pace of 2.1% in Q3 (Q2: -4.2% s.a. qoq). Conversely, imports of goods and services deteriorated, contracting 1.7% in Q3 (Q2: +0.8% s.a. qoq).
On an annual basis, economic activity contracted 5.8% in Q3, compared to the previous period’s 0.3% contraction. Q3’s reading marked the largest contraction since Q1 2009.