Economy grows by 6% with spending boost following easing of restrictions

ireland
Economy Grows By 6% With Spending Boost Following Easing Of Restrictions
The economy grew by 6.3 per cent in the second quarter of 2021 with the vaccine rollout contributing to an increase in consumer spending. 
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The economy grew by 6.3 per cent in the second quarter of 2021 with the vaccine rollout contributing to an increase in consumer spending.

The latest figures from the Central Statistics Office (CSO) show consumer spending on goods and services increased by 12.6 per cent as Level 5 restrictions eased.

The easing of restrictions also led to a 22.9 per cent increase in construction activity.

Net exports of goods and services rose by 8.2 per cent.

Minister for Finance Paschal Donohoe welcomed the news but also said caution should be applied to any interpretations of the economic growth.

“Caution should be exercised when interpreting annual changes, as the comparison is with an exceptionally low base during the first lockdown.

“All sectors in the domestic economy recorded strong growth, with consumer spending and construction particularly strong.”

Minister Donohoe added: “Looking at housing in particular, in the four quarters to end of the second quarter this year, there were roughly 21,000 housing completions and 27,000 starts.

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“This will provide much needed momentum into the second half of this year, with housing supply set to be further boosted by the Government’s new Housing for All strategy.”

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