New data released today from the European Commisssion shows that the Irish economy grew again strongly in the third quarter of 2015 although more moderately than earlier in the year.   
 
National statistics, which are affected by considerable volatility, suggest that real GDP was up by 6.8% compared to the same period in 2014.
 
Job creation accelerated from the second quarter of 2015 to 3%, bringing the unemployment rate down to 8.8% in December 2015, compared to 10.2% a year earlier. In line with the projected
moderation in GDP growth in 2016-17, the unemployment rate is also expected to decline more slowly to 7.5% at the end of 2017, with job creation remaining broad-based across sectors and
regions.
 
Multinationals have been transferring a number of patents to Ireland. In the first nine months of 2015, these transfers generated a growth in investment in intellectual property of over 100% and an equivalent increase in services imports.
 
House prices and rents are forecast to grow at moderate rates, contained by the macro-prudential policies of the central bank and government plans to address supply shortages.
 
The report indicates that Ireland is particularly exposed to a possible deterioration in the external environment which could dampen exports, whereas domestic demand could surprise on the upside if government policies to boost construction are successful. The economy remains vulnerable to shocks in interest rates and changes in the operations of multinationals. 
 
In 2015, the general government deficit is expected to drop to 1.8% of GDP, down from 3.9% in 2014.
 
According to the report, "Ireland's record GDP growth in 2015 was broad-based and coupled with strong job creation. Economic fundamentals are robust and point to more sustainable but still strong GDP growth rates in 2016 and 2017.

"Government finances are improving as strong revenue growth more than offsets increases in expenditure. The Government debt ratio is declining but remains very high."

Source: www.businessworld.ie