We've turned another corner

bleg

Looks like the economy contracted in the second quarter.

The Irish economy contracted in the second quarter of the year as gross domestic product (GDP) shrank 1.2 per cent compared with the first three months.

Figures from the Central Statistics Office showed gross national product (GNP), which excludes the effect of foreign-owned enterprises’ repatriated profits, shrank by 0.3 per cent on the quarter.

Both figures are adjusted to take seasonal factors into account.

“We had been expecting a positive GDP quarterly growth rate to confirm the end of Ireland's recession,” Davy analyst Aidan Corcoran said.

Mr Corcoran said the dip back into negative territory was “not entirely surprising”. However, he noted that the decline in GNP was at a slower pace than that seen in the first quarter, and provided some encouragement.

“The trend in GNP growth remains positive,” he said.

Private and public consumption spending contracted compared to the first three months of the year, but investment rebounded sharply. The later development reflected a slight rebound in construction activity and increased purchases of aircraft among other developments.

Minister for Finance Brian Lenihan said the pace of decline in consumption and investment was easing and was broadly in line with projections.

Compared to the same period in 2009, GDP was 1.8 per cent lower and GNP was down 4.1 per cent. This was accounted for by consumer spending, which slipped 1.7 per cent in volume terms, government consumption, which declined by 3.4 per cent, and a 19.9 per cent decline in capital investment compared to 2009.

Exports grew again from a very high level in the first quarter. In the second quarter, the volume of goods and services sold abroad reached an all time high.

Mr Lenihan said the figures showed home-grown business had stabilised and weaknesses in the economy came from a surge in imports over the three months. "The second quarter figures are affected by a spike in imports in part resulting from an increase in royalty payments that depressed the overall GDP figure," he said.

However, Davy’s Corcoran said much of the apparent increase in imports came from a 15 per cent rise in royalties paid abroad, "something which is not likely to be repeated”.

Mr Lenihan said the only way Ireland could emerge from recession was to continue to drive exports.“The figures for exports are strong and I am encouraged by this - the necessary competitiveness improvements are working. We must export our way out of our current difficulties, there is simply no other way,” he said.

http://www.irishtimes.com/newspaper/breaking/2010/0923/breaking19.html

Sykk

Can we make a forum for this, please?!

Archeron

If only we could find a way to export doom and gloom, we'd be sorted.

starbelgrade

I've said it before... the thing about turning corners all the time, is that eventually, you end up back where you started from.

bleg

Archeron wrote: »

If only we could find a way to export doom and gloom, we'd be sorted.

Ya, we'll just ignore the current situation and say that people stating our position are pessimists who deal in doom and gloom. Why don't we just make up some good news.

jimmycrackcorm

bleg wrote: »

Ya, we'll just ignore the current situation and say that people stating our position are pessimists who deal in doom and gloom. Why don't we just make up some good news.

The good news is the economy did not shrink by 10%

Biggins

We have turned that many corners, we are going around in circles on the block!

strobe

Sykk wrote: »

Can we make a forum for this, please?!

+10000000

Please could we just have a recession forum so anytime people want to post the slightest insignificant thing related to the economy they can dump it in there?

Archeron

bleg wrote: »

Ya, we'll just ignore the current situation and say that people stating our position are pessimists who deal in doom and gloom. Why don't we just make up some good news.

No, news is news, and there's no denying the facts. Just trying to see if we can find a way to make money out of of it. In fairness if there is a company in the US who can make a fortune selling false eyelashes for car headlights, then there has to be SOME way of us making a profit from all the negativity that surrounds us.

Where are the underpants gnomes when you need them??

ejmaztec

Biggins wrote: »

We have turned that many corners, we are going around in circles on the block!

Yeh, there are no corners in a spiral.

Dean820

Completely agree with the Recession forum idea.