The household saving rate was 10.6% in Quarter 2 (Q2) 2023, up slightly from 10.3% in the first quarter.
This is the third successive quarter in which the savings rate has been in the 10-11% range, having declined from its pandemic peak of 32.5% over 2021 and most of 2022.
Both household consumption and income rose in Q2 2023 in current prices, but after adjusting for inflation they were around the same as Q1 2023.
The Gross Value Added of Non-Financial Corporations, which drives Ireland's Gross Domestic Product (GDP), was €95.2bn in Q2 2023, €3.3bn higher compared with Q2 2022.
Ireland's Gross National Income (GNI) was €96.7bn, up €8.8bn on the same quarter of 2022, an increase owing largely to income of Non-Financial Corporations on their investments abroad.
The government surplus was €2.3bn in the quarter, almost €1bn more than the same period last year.
Continuing saving by corporations, households and government contributed to a current account surplus increasing by €2bn to €15.8bn for Ireland in the period.
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Statistician's Comment
The Central Statistics Office (CSO) today (05 October 2023) released the Institutional Sector Accounts Non-Financial for Quarter 2, 2023.
Commenting on the release, Peter Culhane, Statistician in the National Accounts Analysis & Globalisation Division of the CSO said:
"The household saving rate was 10.6% in Quarter 2 (Q2) 2023, only slightly up on 10.3% in the first quarter of the year. This is the second successive small increase in the saving rate, as the rate appears to be stabilising around its pre-COVID-19 level.
Average wages are rising but not as fast as inflation. However more people in work, as well as other factors such as investment income means total household Disposable Income is keeping ahead of price rises.
Inflation led to more household spending, but there was also greater volume of consumption of goods and services in the quarter. Household Consumption was higher in the hospitality sector, and the volume of cars sold was also up.
Overall GDP was higher, due not only to the foreign-dominated Information & Communication sector but also to the domestic-dominated Distribution, Transport, Hotels & Restaurants sector.
The Government sector had a surplus of €2.3bn, helped by the €15.5bn in income and wealth taxes, the highest of any second quarter of a year.
Continuing saving by all sectors contributed to a current account surplus for Ireland in the quarter."