Minister Chambers welcomes the strong third quarter results for the domestic economy

Modified Domestic Demand – a proxy for the domestic economy – increased by 1.3 per cent relative to the previous quarter and was up 4.1 per cent on an annual basis.
Consumer spending fell by 0.2 per cent in the third quarter but was up 1.7 per cent on an annual basis.
GDP grew strongly by 3.5 per cent in the third quarter and increased by 2.9 per cent on an annual basis.

The Central Statistics Office today (5th December) published the Quarterly National Accounts for the third quarter of 2024.

Commenting on the figures, the Minister for Finance, Jack Chambers T.D., said:

“I am pleased to see continued strength in the domestic economy in the third quarter of 2024. Modified Domestic Demand – my preferred metric of Ireland’s economic performance – grew by 1.3 per cent on a quarterly basis and recorded strong annual growth of over 4 per cent.

“Importantly, growth on an annual basis has been broad based in nature with both consumer spending (1.7 per cent) and modified investment (10.4 per cent) making a positive contribution. This solid growth is consistent with the strength of our labour market and the robust exchequer figures released yesterday. Taken together these metrics all demonstrate that the economy has performed strongly this year.

“While today’s figures are encouraging they are, of course, backward looking. Indeed, the economic outlook has become increasingly uncertain and risks are now clearly titled to the downside with the most pressing risks external in nature. As a small, open and highly globalised economy, Ireland is particularly vulnerable to any deterioration in the external environment.

“Put simply, these are risks that we cannot control directly – we must instead focus on managing what is in our control. In particular, we must continue to build up our fiscal buffers, invest in our people and our infrastructure, and ensure the economy remains competitive. This will help ensure that we are in the best position possible to address future challenges.

Ends

Note to editors:

Modified (final) domestic demand, a proxy for the domestic economy, is the sum of personal and government consumption and investment, excluding investment in imported IP and aircraft for leasing. It also excludes changes in the value of stocks.