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 economy as a whole grew in the final quarter of 2021, driven by non-financial corporations' higher gross value added. GDP was €106bn, 13% higher than 2020-Q4. Gross National Income (GNI, B.5g) was €83.6bn, up 9%. More information is contained in the Quarterly National Accounts.
Ireland has a small positive current account (CA) balance in the quarter (the negative of B.12 of S.2). This meant that Ireland (including, of course, the foreign-owned corporations operating here) generated a surplus to invest in the rest of the world. The current account balance can also be seen as what is left of gross saving (B.8g) after the country has invested in fixed capital (P.5): in recent quarters we have invested disposable income here and we have invested in the rest of the world also.
Gross Saving - Investment = Current Account Balance.
Gross Saving less investment can be estimated for each sector, showing the contribution of corporations, government and household to the change in our account with the rest of the world. Figure 3.1 illustrates the trends in, and relationships between the current account balance, gross saving and investment.
The large investment in intellectual property imports by non-financial corporations exceeded the sector's gross saving, meaning it dragged down the current account balance. Meanwhile, the usual seasonal factors produced a small net positive for government (due to the high tax take) and the dip into negative territory for households in the quarter as spending increased around Christmas. Overall, the economy is not increasing borrowing requirements from the rest of the world in the quarter.
| S11 | S12 | S13 | S1M | CA Balance | |
| 2019-Q1 | 8.81691153272144 | 0.481800010971313 | -1.79777904337531 | 1.62222780968255 | 9.91740000000001 |
| 2019-Q2 | -35.3010010742882 | -1.27676968846671 | 1.0355595549584 | 2.8264532177965 | -33.53148 |
| 2019-Q3 | 11.8429422376712 | 1.12947491026593 | -1.1863745688138 | 1.74945673087662 | 11.61649 |
| 2019-Q4 | -60.0014945968254 | -0.450520347698206 | 4.05961006481989 | -0.296945810296309 | -58.77308 |
| 2020-Q1 | -49.7782117072514 | 0.423193877597129 | -3.1981218998308 | 6.0750082294851 | -45.92393 |
| 2020-Q2 | 2.29543665711799 | -0.0240344024884029 | -5.79992755110031 | 11.2798197964707 | 9.85501 |
| 2020-Q3 | 16.30189603618 | -0.0502074840800201 | -6.27733424298043 | 5.35967771088043 | 15.28746 |
| 2020-Q4 | 6.8664900643472 | -1.02812420479639 | -1.99686638064052 | 3.27395112108971 | 10.88999 |
| 2021-Q1 | 12.1294236057082 | 1.25515774872734 | -6.04490100520279 | 9.58985751336725 | 19.04133 |
| 2021-Q2 | 6.34553063291679 | -1.18258114224337 | -1.99922651135057 | 7.37478355697717 | 14.98942 |
| 2021-Q3 | 25.1127017306929 | -0.502933666557698 | -2.51450123776832 | 4.68495781733304 | 23.25492 |
| 2021-Q4 | -4.47928545950792 | -0.883056337789704 | 4.19673085021467 | -0.734106552917035 | 1.50320000000003 |
Rest of the World Sector (S.2)
The higher GVA of non-financial corporations has been driven by higher net exports, or, from the point of view of the rest of the world, a more negative balance of goods and services with Ireland. As our globalised economy has grown, so both imports and exports have increased. Sales of goods and services sent to the rest of the world have risen faster than those bought from abroad and the value of exports was €25bn greater than the cost of imports in 2021-Q4. This trade surplus (B.11) even includes the billions of extra imports of intellectual property in the last quarter.
Most of these net exports are generated by foreign-owned corporations in Ireland, and the associated profit flows out to their owners abroad. The net flow of income on investments (D4 net) was €22.7bn in the last quarter of 2021, up €4.8bn on the equivalent period in 2020. This left the rest of the world a net borrower from Ireland of €1.2bn in the quarter.
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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