After nine months of contraction, finally the plus sign. Dublin returns to growth in the second quarter, driven by consumption and exports. The new data gives relief to the coalition government, which will soon receive the last of the bailout loans from the European Union and the International Monetary Fund.
Signs of recovery could also make tax increases and spending cuts more digestible. Ireland is currently in its sixth year of austerity and public impatience is growing.
The central statistical office announced today that the GDP grew by 0,4% in June compared to the previous quarter, but still marks -1,2% compared to last year.
The return to growth was driven in part by a +0,7% increase in consumption, which until now had collapsed due to austerity measures, leaving the economy at the mercy of exports.
Despite the recovery in the second quarter, the Irish economy remains fragile. The number of employed people has increased for the third consecutive quarter, but the emigration rate remains high and unemployment is still over 13%.
The European Union and the International Monetary Fund forecast growth of 1,1% in 2013 and 2,2% in 2014. Dublin's economy has improved faster than that of the Eurozone as a whole (+0,3. 0,7%), but is still behind Germany (+0,5%) and France (+XNUMX%).
