Irish economy bounces back as Covid-19 restrictions ease

Data from payment card transactions showed growth in spending during July and August

The Irish economy grew strongly in the second quarter of 2021 as pandemic restrictions were eased, official figures suggest.

Central Statistics Office (CSO) figures show GDP increased by 6.3%.

GNP - a measure of economic activity that excludes the profits of multinationals - increased by 6.7% in the quarter.

Modified Domestic Demand - a measure which strips out further multinational impacts - increased by 8.4%.

CSO Assistant Jennifer Banim said easing of restrictions led to higher levels of economic activity for many of the sectors focused on the domestic market.

Output in the construction sector increased by 22.9% and the Distribution, Transport, Hotels & Restaurants sector grew by 0.7%.

However, Agriculture, Forestry and Fishing contracted by 3.5% in the quarter.

'Large declines'

The Finance Minister Pascal Donohoe said that although consumer spending increased by 12.5%, it still remains below its pre-pandemic level.

He said that data from payment card transactions showed positive but easing rates of growth in spending in July and August.

"Similarly in the labour market, the numbers of persons on the pandemic payment has fallen by 70% from the third wave peak of 486,000 in early February, with large declines seen throughout June and July, though the pace of decline moderated in August.'

He added that he was approaching the forthcoming budget with 'a far greater degree of confidence than at any time since the pandemic began.'