Economy shows signs of returning to growth

The economy is showing signs of returning to growth after slowing to a virtual halt earlier this year, according to the latest figures from the Central Statistics Office (CSO).

Irish gross domestic product (GDP) which - includes profits repatriated by Irish-based multi-nationals - grew by 2.1 per cent in the second quarter of this year compared with the period in 2002.

Consumer spending and industrial production registered mild growth while capital investment has declined.

The State's gross national product also recovered slightly in the second quarter and was 3.1 per cent ahead of the same period in 2002. GNP growth was at was just 0.1 per cent last year - the worst result in 20 years.

GNP excludes the profits of foreign owned enterprises and is also affected by other income flows between residents and non-residents which can be very variable on a quarterly basis.

Consumer spending at constant 1995 market prices grew by 2.1 per cent between April and June compared with the same period last year.

Capital investment - again measured at 1995 constant prices - dropped 5.7 per cent.

The net value of exports rose from €4,529 million in the second quarter of 2002 to €4,876 million this year.

Industry output volumes grew marginally in the second quarter, rising 1.1 per cent when compared with outputs for the same period in 2002. Other services output grew by 2.9 per cent.