Eurozone: Irish 3Q growth puts 7% for 2015 in reach – ING

By FXStreet FXStreet (Delhi) – Anthony Baert, Research Analyst at ING, suggests that the Ireland might grow faster than China this year as the fresh GDP data for the third quarter confirms Ireland’s position as the strongest grower in the Eurozone.

Key Quotes

“According to the Central Statistics Office, Irish seasonally adjusted GDP grew by 1.4% QoQ in the third quarter, somewhat slower than the 1.9% in the second quarter. This resulted in a slight acceleration of year-on-year growth from 6.8% to 7.0%. Even without any further expansion in the second half, growth for 2015 as a whole would near 7%. GDP now is more than 7% higher than the pre-crisis peak reached in 4Q2007, in sharp contrast with the Eurozone average.”

“Again, growth was mainly driven by domestic demand. Investment, the major driver, added 1.1pp to growth. Private consumption continues to be “lacklustre” in comparison with GDP, but still grew by 0.7% over the quarter, adding 0.3pp to growth. Surprisingly, government expenditure was a drag on growth for the third quarter in a row, despite this year’s “expansionary” budget and signs that the government was spending windfall tax receipts. Net exports were an even bigger drag, as imports grew twice as fast as …read more

Source:: FX Street