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It was a case of good news and bad news however with GDP up and GNP down. Sam Boal/Photocall Ireland
Economy

Ireland technically exits recession as economy records growth

The economy reversed three consecutive quarters of GDP contraction according to the CSO, growing by 0.4 per cent.

Updated 10.53pm

IRELAND’S ECONOMY GREW in the second quarter of 2013 reversing three consecutive quarters of contraction and technically emerging from recession.

It was a case of  good news and bad news however with GDP up and GNP down according to the Central Statistics Office (CSO).

Preliminary estimates from the CSO showed that the economy as measured by Gross Domestic Product (GDP) grew by 0.4 per cent on a seasonally adjusted basis compared with the first quarter of 2013.

The previous quarter had seen the economy shrink by 0.6 per cent with falls also observed in the second half of 2012.

Gross National Product (GNP), on the other hand, declined by 0.4 per cent in real terms over this period. GNP excludes the value of goods produced by multinationals in Ireland.

Spending

Personal spending saw a rise of 0.7 per cent in the second quarter of the year with Government expenditure falling by 1.3 per cent between Q1 and Q2 this year.

Follwing the publication of the figures, Finance Minister Michael Noonan welcomed in particular the CSO’s export statistics:

Today’s quarterly national accounts show the Irish economy returned to growth in the second quarter of 2013, with 0.4 per cent GDP growth recorded. The figures show exports reaching an all-time high both in terms of value and volume terms in the second quarter. Although the patent cliff is impacting production, services exports are growing strongly.

“My department will publish a revised set of forecasts in mid-October with the Budget, which will take account of today’s figures. In line with provisions of the two-pack, these forecasts, ” he added.

First published 12.31pm

Column: Is GDP all it’s cracked up to be?
Read: Central Bank sets lenders new restructuring targets >

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