The Irish economy grew at its faster rate for over five years in the third quarter of this year on the back of rising capital investment and exports, according to data released today by the Central Statistics Office (CSO).
The data shows that GDP expanded at an annual rate of 7.7 per cent, its fastest rate for five-and-a-half years, while GNP grew by 5.4 per cent.
GNP excludes the profits from foreign-owned firms. According to the CSO data, GNP growth has dropped off considerably from the 9 per cent recorded during the second quarter.
Interestingly, the CSO data indicates that consumer spending growth slowed between July and September, easing to 4.5 per cent, down from the 7 per cent recorded during the first six months of the year.
Capital investment, at constant prices, was up 8.2 per cent on the same period last year. Net exports in constant prices were €1.1 billion higher in the third quarter of 2006 than that of 2005.
"We're forecasting 6 per cent GDP growth for 2006, but it certainly looks like there's upside risk to that forecast now, particularly given that the fourth quarter is already looking pretty strong with the latest indicators showing that consumption has picked up," said Oliver Mangan, chief bond economist at AIB Global Treasury.