Consumer spending boosted Ireland's economy to grow by more than forecasts in 2005, figures released this morning show.
Preliminary estimates today show that GDP grew by a stronger-than-expected 4.7 per cent in 2005 and that GNP rose by 5.4 per cent.
Preliminary estimates show that GDP grew by 4.7 per cent and that GNP rose by 5.4 per cent in 2005
"The figures show the continuing outperformance of the Irish economy that we have become used to," said Austin Hughes, chief economist at IIB Bank in Dublin.
"The critical element is the shift towards domestic sector, with consumer spending and the property market leading the way."
GDP measures a country's total annual output of goods and services. GNP is calculated by adding to GDP the income earned by residents from investments abroad, less the corresponding income sent home by foreigners living in the country.
Unlike other western European economies, Ireland is benefiting from a very strong domestic market.
Consumer spending increased by 5.6 per cent in volume terms year-on-year, according to the CSO, a trend Hughes says he expects to see continuing. However, exports did not fare quite so well, with net exports down 2,399 million euros on 2004, according to the CSO.
Mr Hughes described the weakening trade position as disappointing but said it is something that is likely to become a feature of the Irish economy in the future.