Minister Chambers notes publication of quarterly national accounts

Modified Domestic Demand – a proxy for the domestic economy – fell by 0.5 per cent relative to the previous quarter but was up 1.5 per cent on an annual basis.
Consumer spending grew by 1.1 per cent in the second quarter and was up 1.3 per cent on an annual basis.
GDP was down 1.0 per cent in the second quarter and declined by 4.0 per cent on an annual basis, reflecting continued volatility in the multinational sector.

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

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

“While I recognise the fall in GDP in the second quarter of this year, GDP is not a useful measure in assessing the living standards of domestic residents, given the outsized role the multinational sector plays in our economy. The fall in GDP reflects the volatile nature of activity in the multinational sector.

“In terms of the domestic economy, Modified Domestic Demand – my preferred metric of Ireland’s economic performance – declined on a quarterly basis, but recorded positive growth of 1.5 per cent on an annual basis.

“I am pleased to see that consumer spending contributed positively to this growth, with consumption increasing by 1.3 per cent on an annual basis. The growth in consumer spending, alongside robust exchequer figures released yesterday and the strength of our labour market highlights the relatively healthy position of our domestic economy at present.

“Looking ahead, inflation has now eased back significantly and is expected to remain on a stable trajectory over the short term. This will help boost real incomes which should further support growth in our domestic economy in the second half of the year.

“My Department will publish updated macroeconomic and fiscal forecasts as part of the Budget early next month. Budget 2025 will ensure we continue to support families, workers and businesses while also investing in our public services and infrastructure to prepare us for the challenges that we face now and into the future”

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.