National Accounts demonstrate the K-shaped nature of the Irish economy

Ibec, the group that represents Irish business, noted today's National Accounts numbers published by the Central Statistics Office. The figures for the months of full year of 2020 captured the K-shaped nature of the Irish economy during COVID-19. Export growth of 6.2% shows the strength of the underlying business model, despite testing international conditions. On the other hand, the impact of COVID-19 on associated health restrictions was clear in the fall of 9% in consumer spending.  

Ibec Chief Economist Gerard Brady said: “These trends clearly illustrate the ‘K-shaped’ nature of the recovery, with large differences in the pace of growth between and within sectors. The figures released today show both the significant losses facing our domestic sectors and the strength of the underlying business model.” 

"There is no doubt that we face some increasingly challenging economic circumstances. As we speak, there are close to half a million people unemployed and large sectors of our ‘experience economy’ face extremely challenging operating environments. Continued and enhanced support from Government for the worst impacted sectors will be needed through much of 2021. However, there is now real hope for the second half of 2021 that as vaccine rollout takes place, and a robust export performance continues, this will help release record household savings, bring down unemployment, and give the economic recovery a much needed shot in the arm.”