National Accounts figures reflect exceptional growth despite headwinds

July 15, 2022

Ibec, the group that represents Irish business, welcomes today's National Accounts numbers published by the Central Statistics Office (CSO). The annual figures for 2021 show exports and multinational sectors continued to drive growth, despite the impact of Covid-related restrictions and disruptions.
Ibec economist, Hazel Ahern-Flynn said: “The figures released today by the CSO confirm broad growth across both international and domestic facing sectors in the wake of Covid impacts last year. The Annual National Accounts recorded exceptional GDP growth of 13.6% and Modified Domestic Demand growth of 5.8% for 2021. This recovery was experienced across both domestic and internationally facing sectors, which grew by 20.7% and 4.8% respectively last year on the back of loosened Covid restrictions. Last week’s exchequer returns confirmed that, despite global headwinds from the invasion of Ukraine and inflationary pressures, the Irish business model is continuing to deliver resources to the State, with higher-than-expected returns across VAT, corporation tax and income tax reflecting high employment and strong business and retail activity. The momentum we have entered this year with will provide the buffer needed to meet these ongoing challenges.”
“The National Accounts figures released show an economy which continues to grow despite headwinds. Modified Gross National Income, a measure of the Irish economy that strips out globalisation effects, grew by 15.4% last year, reflecting that the Covid recovery was broad-based and experienced across both multinational and domestic facing sectors. This was further evident in the personal spending figure, which grew by 4.6% as households responded to the easing of Covid restrictions. Building on the momentum from last year, the National Accounts for the first quarter of this year, also released today, recorded GDP growth of 6.3%. While disruptions in the global supply chain and rising cost pressures continue to impact this year, the strong performance of the Irish economy will act as a buffer in the face of these challenges.”