Gross Domestic Product (GDP) fell by €0.7bn (1%) in Q2 2024, compared to Q2 2023 in current prices not seasonally adjusted. While gross operating surplus (B2A3G) fell by €2.8bn (due largely to falling profit in the multi-national dominated manufacturing sector), this was counter-weighed by an increase in compensation of employees of €2.2bn.
After accounting for the international flows of investment income, including outflows of profits by foreign multi-nationals, Gross National Income (GNI, B.5g) was €97.5bn, up €2.4bn (3%) on the €95.1bn seen in Q2 2023.
The consumption of goods and services by households and government (P.3) was €53.8bn, an increase of €3.2bn (6%) compared to the second quarter of 2023. This left gross saving (B8g) down €0.8bn at €42.6bn.
Capital investment (P.5) was just €7bn, compared to €32bn in the equivalent period last year due to the large exports of intellectual property, which are subtracted from capital purchases. Thus, while the changes further up the account were all single-figure percentage changes, after capital investment is included, Ireland's net lending (B.9) was up more than 400% from €6bn to €31bn, comparing Q2 2023 to Q2 2024.
Table 3.2 below shows Ireland's transactions with the rest of the world. This is set out from the point of view of Ireland. That is, income received by Ireland from the rest of the world is shown as a positive. The Pxstat tables show these transactions from the point of view of Rest of the World (S.2): for example, income Ireland pays to the rest of the world is a resource of the rest of the world.
As we saw in the chapter on Corporations, there were large sales of intellectual property in the quarter. These are included in exports of services, and so have a significant impact on the balance of goods and services (B11). Whereas figures for Q2 2023 show Ireland exported €43bn more than it imported, the latest quarter show that figure jumping to €64bn.
Imports of services were up from €86bn to €101bn, largely driven by higher royalty imports (up €11bn). While overall GVA in the Manufacturing sector was down, goods for processing exports were unchanged, and pharmaceutical exports increased by €5bn to €23bn. All of these changed were dwarfed by the growth in service exports by €32bn.
The reduction in gross operating surplus in the non-financial sector meant lower profits for foreign-controlled multi-nationals. This in turn meant the return on investment flowing out of the country declined. Net investment income (D.4) outflow decreasing by €3bn from €30bn to €27bn. Taking all current transfers together, the Current Account Balance was €35bn up from €11bn in the second quarter of 2023.
Further details on transactions with the Rest of the World are provided by institutional sector in the International Accounts, which include the financial account as well.
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