National Accounts and Exchequer returns show strong overall growth despite slowing of domestic economy
Ibec, the group that represents Irish business, welcomes today's Exchequer returns and National Accounts numbers. The Q3 figures for 2022 showed continued but slowing growth, with GDP up 2.3% compared to the previous quarter, with Exchequer tax receipts up by almost one-quarter on 2021.
Ibec economist Hazel Ahern-Flynn: “The figures released today by the CSO showed continued growth in the Irish economy, with GDP increasing by 2.3% in the third quarter of the year and up 10.9% annually. This is primarily driven by ongoing growth in the multinational sectors, with the domestic economy experiencing stronger headwinds. Modified domestic demand, an alternative measure of the domestic economy, has grown by 5.9% annually, although it showed a marginal 1% quarterly decline on the back of softening personal consumption and government spending in Q3. As expected, cost pressures for households have seen a slowing of consumption, with consumer spending growing by just 0.3% in the third quarter. This leaves total personal consumption spending at just below its pre-pandemic levels.
“Despite worsening global conditions, several areas of the Irish economy continue to see robust growth. Exports continued to rise strongly across both goods and services, with total exports up 4.8% in Q3. Given significant slowdowns in our major trading partners, this is a positive result showing that Ireland’s export model is continuing to deliver growth for the Irish economy.
“Likewise, the trend of significant business investment has continued, with total investment growing strongly quarter-on-quarter. That robust performance among the export-facing and multinational sectors, along with high employment growth over the year is reflected in the November Exchequer returns, which have seen corporate and income tax receipts in particular come in significantly ahead of expectations in the year to so far. Total Exchequer receipts to end-November are up 24% over the same period last year. Whilst corporation tax may get the headlines, it is notable that income taxes have risen by an exceptional 16% in the first 11 months of the year.”