# Irish domestic economy returns to growth in first quarter
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-06-02
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Irish domestic economy returns to growth after recession
Meta Description: Ireland's domestic economy returned to growth in the first three months of the year after a shallow recession. Construction and agriculture showed
URL: https://financedigest.com/irish-domestic-economy-returns-to-growth-in-first-quarterhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-06-02t115214z1lynxmpej510c8rtroptp4ireland-economy-gdp-1736813935398-compressed.jpg)

# Irish domestic economy returns to growth in first quarter

DUBLIN (Reuters) – Ireland’s domestic economy returned to growth in the first three months of the year after a shallow recession, data showed on Friday, and the finance minister said momentum was set to continue as the country hits full employment.

Modified domestic demand, the preferred gauge of the Irish economy due to the distorting effects of large multinationals on GDP, saw quarterly growth of 2.7% in the first three months of the year after two quarters of mild contraction.

Construction grew 12% and agriculture 15.9% in the quarter, the Central Statistics Office data showed. [Personal spending on goods and services](https://www.financedigest.com/personalizing-the-workforce-experience-in-financial-services.html "Personalizing the Workforce Experience in Financial Services") grew 1.7% in the period.

In a sign of the continuing strength of the economy, Ireland’s [unemployment rate](https://www.financedigest.com/spains-unemployment-rate-inches-up-to-12-87-in-q4-2022.html "Spain’s unemployment rate inches up to 12.87% in Q4 2022") hit an all-time low of 3.8% in May, dipping below the previous low of 2001 in the early days of the country’s so-called Celtic Tiger boom.

Incoming data suggest that momentum has continued into the second quarter, bolstered by a record low unemployment rate of 3.8% registered in May,” [Finance Minister Michael McGrath said in a statement](https://www.financedigest.com/uk-finance-minister-hunt-to-make-statement-at-1000-gmt-source.html "UK finance minister Hunt to make statement at 1000 GMT – source").

Our [economy is now clearly at full employment and it is important that budgetary policy is calibrated so as to avoid adding to inflation.”](https://www.financedigest.com/inflation-weighs-on-consumer-morale-in-euro-zones-big-three-economies.html "Inflation weighs on consumer morale in euro zone’s big three economies")

Modified domestic demand, which strips out some of the ways multinational activity can inflate economic activity, grew 8.2% in 2022 as a whole, faster than gross domestic product (GDP)growth in any [euro zone](https://www.financedigest.com/euro-zone-business-growth-slowed-in-may-as-factories-struggled-pmi.html "Euro zone business growth slowed in May as factories struggled-PMI") economy.

The finance ministry in its last [forecasts in April said annual modified domestic demand growth](https://www.financedigest.com/cable-cars-and-ropeways-market-report-size-growth-demand-scope-opportunities-and-forecast-2016-2026-fmi.html "Cable Cars and Ropeways Market Report | Size, Growth, Demand, Scope, Opportunities and Forecast 2016-2026: FMI") was set to slow to 2.1% in 2023.

GDP shrank 4.6% in the first three months of the year, compared to a decline of 0.1% in the last [quarter of 2022 as the CSO’s measures of Globalised Industry contracted](https://www.financedigest.com/dollar-pares-gains-as-us-growth-contracts-for-second-quarter.html "Dollar pares gains as US growth contracts for second quarter") 18.2%. [GDP was 5.5% higher than in the first quarter](https://www.financedigest.com/spain-q2-quarterly-gdp-growth-revised-to-1-5-from-1-1.html "Spain Q2 quarterly GDP growth revised to 1.5% from 1.1%") of 2022.

The [government has forecast GDP growth](https://www.financedigest.com/imf-amf-afesd-and-government-of-morocco-to-host-regional-conference-opportunity-for-all-promoting-growth-jobs-and-inclusiveness-in-the-arab-world.html "IMF, AMF, AFESD and Government of Morocco To Host Regional Conference: “Opportunity for All—Promoting Growth, Jobs, and Inclusiveness in the Arab World”") is likely to slow to 5.6% in 2023 from 12% in 2022.

(Writing by Conor Humphries; Editing by Andrew Cawthorne, Alison Williams and Andrew Heavens)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---