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Multinational-dominated sectors grew by 6.2% in Q2

Modified domestic demand, a broad measure of underlying domestic activity covering personal, Government, and capital formation spending, has increased by 1%, CSO data show.

Personal spending on goods and services increased by 0.9%, while multinational-dominated sectors grew by 6.2% in the quarter, with all other sectors increasing by 1.5%.

Exports fell by 4.1% in Q2 of this year, while imports increased by 0.1%, leading to a decline in overall net exports of 14.4% (-€7.0 billion) in the quarter.

The balance-of-payments current account recorded a surplus of €15.8 billion in transactions with the rest of the world in Q2.

Statistician Jennifer Banim, commented: “In today’s results, Gross Domestic Product (GDP) is estimated to have increased by 0.5% in April, May, and June (Q2) 2023.

“For Gross National Product (GNP) – a measure of economic activity that excludes the profits of multinationals – growth of 11.1% is estimated for the quarter.

“The globalised Industry sector expanded by 3.8% in Q2 compared with Q1, while the information and communication sector increased by 2.0% over the same period.

“Overall, multinational-dominated sectors grew by 6.2% in the quarter and accounted for 53.1% of total value-added in the economy, compared with a 46.9% share for all other sectors.”

Domestic economy

The agriculture, forestry and fishing sector expanded by 10.3% in the quarter, while the distribution, transport, hotels, and restaurants sector increased by 1.9%, quarter-on-quarter.

Professional, administrative and support activities, and finance and insurance grew by 6.9% and 4.6%, respectively, in the quarter.

However, there were declines in construction, and in arts and entertainment during the period, of 2.2% and 0.9% respectively.

Expenditure

Net exports of goods and services fell by 14.4% in Q2 2023, or by €7.0 billion.

Capital investment rose by 16.0% in the quarter, driven mainly by investment in intangible assets and a significant build-up in terms of the value of physical changes in stocks.

Government spending on goods and services increased by 4.3% in Q2, while personal spending on goods and services rose by 0.9% in the quarter.

Personal spending in Q2 of €32.1 billion was 9% above the peak pre-pandemic level recorded in Q2 2019.

Final domestic demand, a measure of personal, Government and investment spending, increased by 3.0% in Q2 2023, reflecting a continued recovery in personal and investment spending compared with the previous quarter.

International accounts

National accounts statistician Gordon Cavanagh commented: “Results for the first half of 2023, compared with the equivalent period of 2022, show GDP increasing by 0.2%.

“Factor income outflows were €3.0 billion lower than in H1 2022, leading to an overall increase in GNP of 2.2% for the first six months of 2023 compared with the equivalent six months of 2022.”