The Irish economy posted double-digit growth last year despite a negative fourth-quarter slump on volatile multinational activity.
Gross domestic product (GDP) rose 13.5 percent in 2021, the Central Statistics Office (CSO) said today, as multinational pharmaceutical and technology exports continued their pandemic surge.
Growth was bolstered by a rebound in consumer spending and indigenous sectors as the economy began to reopen.
However, multinational-dominated sectors continued to dominate, growing 21.9 percent last year, while growth in other sectors was 5 percent, the CSO said in its latest quarterly national accounts released on Friday.
The multinational sector continues to grow in importance, accounting for 56.2 percent of total value added in the economy in 2021, compared to 45.1 percent in 2019.
Foreign-dominated sectors experienced record growth last year, with manufacturing growing 24 percent and information and communications growing 14.1 percent last year.
However, arts and entertainment saw some recovery, expanding 12.6 percent, while the distribution, transportation, hotel and restaurant sectors grew 6.2 percent for the year.
But construction shrank 4.7 percent and agriculture, forestry and fisheries fell 1.4 percent.
Personal spending on goods and services rose 5.7 percent for the year (with government spending up 5.3 percent), while modified domestic demand — a measure of growth that excludes volatile patents and aircraft leasing transactions — rose 6.5 percent for the year .
Conall MacCoille, chief economist at Davy Stockbrokers, said previously released jobs and tax data point to “exceptionally strong economic performance during the pandemic and into early 2022”.
“The underlying story is that Ireland’s export sectors are in poor shape, which more than compensates for the disruption to indigenous activities caused by Covid-19.”
The European Commission is increasingly concerned about the impact Ireland’s volatile multinational sector is having on the EU’s quarterly figures.
Irish investment and trade figures skewed EU figures late last year so much that they were left out of some European averages, prompting the European Commission to downgrade its growth estimate for Ireland for 2021 by almost a notch from 14.6 percent to be corrected 13.7 pcs.
GDP fell 5.4 percent in the last three months of last year, according to the CSO.
Investments in intellectual property fell 56.1 percent for the full year compared to 2020, the CSO said.
Multinational net outflows were 90.7 billion euros, up 21 billion euros from 2020 levels.
“As usual, there is a certain statistical fog surrounding Ireland’s national accounts,” said Conall MacCoille of Davy. “However, a number of indicators show that the economy is very lively.”
https://www.independent.ie/business/irish/ireland-records-double-digit-growth-in-2021-41411245.html Ireland posts double digit growth in 2021