Ireland's economy steamed ahead in the first quarter of 2007 with economic growth of 7.5 percent on a 12-month comparison, according to official data published Tuesday. "Gross domestic product (GDP) at constant prices was 7.5 percent higher in the first quarter of 2007 compared with the first quarter of 2006," Ireland's Central Statistics Office (CSO) said in a release.
The GDP growth rate stood at 6.4 percent in the first quarter of 2006, according to revised figures. Gross national product, the Irish government's favoured economic growth measurement, slowed to a rate of 6.4 percent in the first quarter of 2007, compared with 7.6 percent in the same period last year, the CSO said.
GNP is regarded as a more accurate barometer of the country's economic performance because it strips out substantial repatriated foreign investment profits. Consumer spending, meanwhile, grew by 5.4 percent in the first quarter compared with the same period last year, the CSO said. Capital investment was 13.3 percent higher in the first quarter compared with a year earlier.
The CSO added that net exports - exports minus imports - totalled 278 million euros (378 million dollars) in the first quarter compared with the 2006 figure. The volume of industrial output increased by 14.4 percent in the first quarter. Despite the strong data, Ireland's leading economic think-tank sounded a downbeat note on Tuesday, slashing its economic growth forecasts for 2007.
The Economic and Social Research Institute (ESRI) downgraded its forecast for Irish GDP growth this year to 4.9 percent, compared with a previous prediction of 5.4 percent. The ESRI added in quarterly commentary that it expected Irish GNP would grow by 4.8 percent this year, down from its March quarterly forecast of 5.4 percent.
The think-tank sees economic growth easing further in 2008. A high level of home building last year helped lead to a GDP increase of 6.0 percent and a GNP surge of 7.4 percent, according to the ESRI. The think-tank also predicted a slowdown in consumption growth following the end of the maturing of a special government saving scheme.
The ESRI also expects the slower pace of economic growth in 2007 and 2008 will be mirrored in the labour market and the public finances. "We anticipate the rate of unemployment to increase to 4.7 percent in 2007 and to 5 percent in 2008," it added. Consumer price inflation in Ireland was forecast to average 4.9 percent this year and 3 percent in 2008, according to the ESRI.
Comments
Comments are closed.