Ireland's economic output increased significantly in 2023, according to new data released by the Central Statistics Office (CSO).
Gross National Income (GNI), a measure of Ireland’s economic performance that excludes multinational companies, expanded by 5% in 2023, the CSO said in a statement.
However, Gross Domestic Product (GDP) contracted by 5.5% in the same period due to reduced goods exports by multinational companies.
Most countries use GDP as an indicator of economic performance, but Ireland's GDP is badly distorted by the significant presence of multinational companies.
GNI, which has been used to measure Ireland's economic activity since 2017, provides a more accurate picture of Ireland's economic performance.
GNI is calculated by measuring the total income earned by residents of a country living at home and abroad and subtracting income earned in the domestic economy by non-residents. It also includes adding subsidies received from abroad and subtracting subtracting subsidies paid to foreign countries.
Chris Sibley, Assistant General Director of the CSO, noted that the more globalized sectors of the economy contracted for the first time since 2013.
"Overall, the multinational sector contraction was 16.2%, "Sibley said in a statement.
The globalized industry sector contracted by 21.7% in 2023, while the information and technology sector grew by 7.4%.
There was also an increase of 6.1% for sectors focused on the domestic market, including a growth of 14.8% for the agriculture, forestry and fisheries sector. The Financial and insurance sector expanded by 14.1%, while real estate activities grew by 10.9%.
However, the construction sector fell by 2.9% in 2023, while the distribution, transportation, hotels, and restaurants sector posted a decline of 1%.
Meanwhile, personal spending on goods and services increased by 4.8% in 2023, while Government spending on goods and services increased by 4.3%.
"Today’s results include estimates for GNI, the indicator designed to exclude globalization effects disproportionately impacting Irish economic results," Sibley said.
Ireland's GNP for 2023 was €290.9 billion, while Ireland's GDP was €510 billion, marking the second year in a row that Ireland's GDP exceeded half a trillion euros.
GDP had grown by 9.4% in 2022 and 13.6% in 2021.
Minister for Finance Jack Chambers said the figures reflected strong growth in the domestic economy.
"Despite facing significant inflationary pressures, consumer spending nevertheless drove growth in the domestic economy," Chambers said.
"This performance reflects the strength of the labor market, which has been at full employment since mid-2022."
The CSO said figures from the first quarter of 2024 indicated that growth momentum has continued.
Modified Domestic Demand (MDD), a key short-term measure of domestic economic performance, increased by 1% compared to the final quarter of 2023. MMD increased by 2.6% in 2023.
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