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Irish economy grew by 0.9pc in 2012

Thursday, March 21 11:16:31

The Irish economy grew by 0.9pc during 2012 in terms of GDP - the second year in a row that the economy grew after years of recession.

However, the last quarter of the year saw almost no change compared to the previous three months, latest figures from the CSO reveal.

This is the second year in succession in which GDP showed an increase over the previous year following three years of declines in GDP during 2008 to 2010.

GNP, which is seen as a better indicator of the domestic economy by stripping out profits by multinationals operating here, showed an increase of 3.4pc in 2012 over 2011.

On a seasonally adjusted basis, constant price GDP for the fourth quarter of 2012 showed almost no change compared with the previous quarter while GNP declined by 0.8pc over the same period.

Exports performed positively in 2012 for the third successive year while imports remained at much the same level as in 2011.

The combined effect resulted in overall growth of E4,413m in net exports, which more than offset the declines that took place in the final domestic demand components of expenditure.

Personal consumption in 2012, which accounts for approximately two thirds of domestic demand, fell by 0.9pc while Government expenditure was 3.7pc down on 2011.

Initial estimates for the fourth quarter of 2012 indicate that there was almost no change in GDP in real terms in Q4 2012 compared to the previous quarter.

There was a decline of 0.8pc in GNP in constant prices over this period. On the Output side the Distribution, Transport. Software and Communications sector increased by 3.3pc in Q4 compared to the previous quarter while Public administration and defence showed a 0.9pc growth in Q4 over Q3.

Industry declined by 5.9pc while Agriculture, Forestry and Fisheries decreased by 8.6pc and Other Services were 0.4pc lower in Q4 2012 compared with Q3 2012.

On the Expenditure side there were small declines in Government expenditure, in Capital Investment and in Net Exports compared with the third quarter while Personal Consumption Expenditure increased by 1pc in Q4 compared to Q3.