The Irish economy grew by 5.9 per cent in 2001, or half the growth rate recorded a year earlier, according to official statistics published today.
The figures released today by the Central Statistics Office indicate that Gross Domestic Product at constant 1995 market prices was 5.9 per cent for the year 2001. This compares with an annual growth rate of 11.5 per cent for 2000 and 10.8 per cent for 1999.
Although the figure is broadly in line with economists’ forecasts it falls short of estimates recently published by the ESRI and Central Bank which forecast the economy would record GDP growth of 6.8 per cent in 2001.
Gross National Product is provisionally estimated to have been 5 per cent higher in 2001.
The figures show the annual rate of growth in the early quarters of 2001 was strong but slowed significantly in the second half of the year. By the fourth quarter, the economy stalled with no annual increase recorded.
A breakdown of the figures shows consumer spending was 4.8 per cent higher in 2001 than in 2000 but capital investment grew by only 0.5 per cent over the year.
Mr Dermot O’Brien, chief economist with NCB stockbrokers, was upbeat about the figures in general and in particular the buoyancy of the domestic economy. He said the fact that consumer spending held up well in what was a difficult year showed the robustness of domestic demand and that this area would be a major growth driver in the future.
Mr Robbie Kelleher, head of research at Davy Stockrokers, said although the headline rate of 5.9 per cent came as no real surprise, the CSO’s estimate of 7 per cent growth in the construction sector appeared "optimistic". He said feedback gathered by Davy's from the leading construction companies would suggest growth in the sector was flat in 2001.
The volume of foreign trade slowed sharply in 2001. Export and import volumes rose in volume by 8.4 per cent and 7.7 per cent, respectively, in 2001 compared with annual increases of 17.8 per cent and 16.6 per cent in 2000.