“Irish Economy Shrinks by 2.7% in Q1 2022, says Central Statistics Office”

According to new figures from the Central Statistics Office (CSO), the Irish economy experienced a decline in the first quarter of 2022. Gross domestic product (GDP) fell by an estimated 2.7% compared to the last quarter of 2021, but the economy is still larger than it was a year ago. However, Irish GDP figures can be volatile due to financial movements within large multinational companies. The industry sector was the main driver of the decline, as it fell from very high levels in the second half of 2021. Finance Minister Michael McGrath stated that Modified Domestic Demand (MDD) provides a more accurate measure for domestic economic activity in Ireland. Despite the latest figures, most statistics show that the Irish economy is robust, and incoming data relating to the labor market, construction activity, and tax receipts point to a solid start to the year. However, data revealed a two-decade-long run of growth in capital services ended in 2021 due to a fall in investment in intangible assets such as patents. Capital services fell by 2.4% in 2021, the first decrease ever recorded. This series collects data on the flow of output from physical assets such as factories and intellectual property such as patents, the very activities that have driven corporate tax receipts to unprecedented levels in recent years, underpinning the state’s position.