This release has been compiled during the COVID-19 crisis. The results contained in this release reflect some of the economic impacts of the COVID-19 situation. For further information see our Information Note.
The Household saving rate in April, May, and June (Q2) 2022 was almost 20%. This was nearly twice the long term average rate.
Household income and expenditure both rose, with the increase in saving directly related to in-comings rising faster than out-goings.
The Government deficit (net borrowing, B.9) was €1,412m in Q2 2022. This includes €2.6bn in additional net capital transfers to households, which are payments for defective concrete blocks that will be made over the coming months.
Despite this large exceptional item, this quarter's Government deficit was far lower than the same period in 2020 and 2021. The improved position was due to both higher revenues and lower expenditure.
The Gross Value Added of Non-Financial Corporations, which drives Ireland's Gross Domestic Product (GDP), was €15.5bn (18%) higher in Q2 2022 compared to the equivalent quarter last year.
The Financial Corporations' value added also grew, as their income on investments to and from the rest of the world continued upwards.
Ireland had a positive current account balance with the rest of the world in the quarter. This was due to higher net exports.
The Central Statistics Office (CSO) today (05 October 2022) released the Institutional Sector Accounts Non-Financial for Quarter 2, 2022.
Commenting on the release, Statistician in the National Accounts Division of the CSO Peter Culhane said:
"The second quarter of this year saw economic growth feeding into household saving as higher incomes were not matched by higher consumption. Higher prices and higher volumes did bring consumption up, albeit from a low base as we came out of COVID-19 restrictions. However, numbers in work and wages more than kept pace with this growth in spending. This left the saving rate at almost 20%.
The economic growth was dominated by foreign multinationals here, but domestically owned corporations also saw some expansion.
This improved situation fed into the government's net lending, as taxation income grew, and expenditure declined due to fewer pandemic supports being in place. However, the cost of defective concrete block payments over the coming months is included in government expenditure for this quarter: this amounted to an additional €2.6bn.”