Well, this is a turn-up for the books.
Amid strong scepticism about the ability of future Irish growth to offset Ireland’s post-bailout austerity programme — the economy managed to post its first quarterly increase since late 2007 in Q3 2010, according to initial estimates (chart via the Central Statistics Office):
The GDP growth rate looks small, and should be put in the context of its 0.5 per cent decline year-on-year, but — if it can be sustained through the revisions of the data — looks quite impressive.
This section on the GNP growth figures also provides some context:
Increased factor income flows both inwards (credit) and outwards (debit) between Q2 and Q3 2010 expressed in constant prices transformed a quarterly GDP growth rate of 0.5 per cent into a 1.1 per cent increase in GNP. Increased outward profit flows and interest payments on Government debt were more than offset by quarterly increases in direct investment income earned by Irish based Public Limited Companies (PLCs). The profits earned by Irish headquartered international groups had a major influence on this latter increase.
So Google (and its taxes to the Irish Exchequer) was doin’ all right and Ireland was just clambering out — just before the entire Irish banking universe blew up.
And then came the fourth quarter from hell.
Related link:
Standing up for Ireland ♣ - FT Alphaville