Ireland Current Account Balance (% of GDP)

Current Account Balance in Ireland

GDP unexpectedly contracted in Q1, largely due to a fall in the industrial sector. Ireland’s GDP figures are volatile due to its large multinational sector, with prior data having suggested that the indigenous economy had performed well. Private spending appeared to pick up in the quarter: In Q1 compared to Q4, the services PMI and consumer confidence averaged higher and consumer confidence, while retail sales rebounded. This improvement was likely connected with lower inflation and unemployment in the quarter. In other news, the government said in April that it had raked in 70% more corporate tax in Q1 2023 than in Q1 2022. The government primarily funneled these revenues into Ireland’s public pensions fund. In other news, in late April, local media reported that the government would announce the creation of a new sovereign wealth fund by early May.