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For more information on this release:
E-mail: NatAccAnG@cso.ie Michael Connolly (+353) 1 498 4006 Peter Culhane (+353) 1 498 4382
For general information on CSO statistics:
information@cso.ie (+353) 21 453 5000 On-line ISSN 2009-5600

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.

CSO statistical release, , 11am

Quarterly Institutional Sector Accounts Non-Financial

Quarter 4 2020

Gross Household Saving by Component€million
 Total Disposable Income (B.6g + D.8)Final Consumption Expenditure (P.3)Gross Saving Ratio
2019118,610104,15412.2%
2020124,47294,91023.7%

Household saving ratio 23.7% in 2020

go to full release

This release was originally published on 1 April 2021 but revised on 13 April 2021. This revision takes account of higher government payments to households (D.62, unemployment payments and similar transfers) than stated in the first release. These were revised upwards by €1.4bn owing to new data on the Social Insurance Fund. This increases household gross disposable income, gross saving, saving ratio and net lending. There is a corresponding decrease in government disposable income and gross saving and rise in net borrowing. We apologise any inconvenience this amendment may cause. 

 

In 2020, households saved €29.6bn, compared to €14.5bn the previous year. This is a change from saving 12.2% of total disposable income to saving 23.7% of it. Higher saving is the result of two factors: lower consumer spending, and higher income. See our Infographic. COVID-19 restrictions severely limited opportunities to spend on activities such as nights out. The uncertainty around the trajectory of the pandemic may also have induced 'precautionary savings' as households kept money back, anticipating tightening finances in the future.

Perhaps more surprising is that in a pandemic year when large numbers of people were out of work, household gross disposable income rose slightly. This rise in joblessness did not bring down overall income for two reasons. First, the government stepped in with the Pandemic Unemployment Payment and other social transfers (an extra €7.2bn transferred in D.62) and Temporary Wage Subsidy Scheme/Employment Wage Subsidy Scheme (€3.9bn extra in D.3). While this was a large-scale intervention, median income for those receiving the PUP declined compared to income when working. This decline in income was offset by higher median incomes for those still in work. The total wage bill in large parts of the economy (such as industry, finance, IT, and public service) rose due to higher earnings per week and more people being employed in those sectors. After lower taxes and social contributions are taken into account, as well as other income sources, overall total disposable income rose. The CSO's COVID-19 Information Hub has further information on COVID-19's social impact and the changes in employment and business in recent months. 

What happened to this €29.6bn in saving? The largest proportion was added to deposits, as Irish banks' holdings from households rose by €14bn in the year. Saving also went into pension funds and paying off mortgages and other loans. Less than a billion of the saving went directly into higher capital investment (fixed capital formation, P.5) in new housing and improvement to dwellings, perhaps because of restrictions on construction activity. 

The last quarter of the year traditionally has the largest Final Consumption of Households because so much is spent around Christmas. The accounts show people did spend more in October to December 2020 than in July to September, but after adjusting for seasonal factors, spending decreased by 3% compared to the previous quarter. That may have been because the restrictions in October and November were tighter than in July to September. The seasonally adjusted quarterly total disposable income increased in 2020-Q4, bringing the saving ratio to 24.4%, up from 19.8% the previous quarter. That comparison is between two quarters in which pandemic-related restrictions were in place: compared to quarter 4 of 2019, spending was down 8%. That is, for every €12 spent coming up to Christmas 2019, €11 was spent pre-Christmas 2020.  

The seasonally adjusted data series which includes Gross Disposable Income, Personal Consumption of Goods and Services and Gross Saving of the Household incl. NPISH sector is available on PxStat. Only the most significant transactions are shown in the table for each sector in this release. The entire unadjusted series for all variables published in this release are also available at the same link. See Background Notes for definitions of the terms used. 

Table S1M Households and NPISH (€million)
ESA CodeDescription2019Q42020Q12020Q22020Q32020Q42020Q4 versus 2019Q4
B2A3G Self-employment and rent8,5487,6296,8117,6148,478-71
D1 Paid employment25,84826,28223,09324,24826,337489
D4_rec Investment income received1,6261,5991,8541,4741,406-220
D4_paidminus Interest paid after FISIM-721-724-703-708-70517
D5_paidminus PAYE, income tax etc-8,721-5,999-5,123-5,577-8,906-185
D61 minus PRSI, pension contributions etc-5,871-5,728-4,997-5,323-5,648223
D62 plus Social protection, pensions received7,8757,53710,1608,8009,8391,964
D7_net plus net miscellaneous transfers229-629870-16-245
B6G equals gross disposable income28,81330,53331,19230,59830,7861,973
D8 plus adjustment for pension fund value438431369304259-179
P3 minus consumer spending-27,503-25,676-19,754-24,265-25,2152,288
B8G equals gross saving1,7485,28811,8086,6365,8304,082
D9_net plus net capital transfers9512117710271-24
P5 minus capital spending-1,913-1,807-1,127-1,842-2,063-150
B9 equals net lending (+) /borrowing (-)-703,60210,8574,8953,8383,908
Table S1M Households and NPISH (€million)
ESA CodeDescription20192020Change
B2A3G Self-employment and rent31,51430,532-983
D1 Paid employment100,21999,959-260
D4_rec Investment income received5,7946,333539
D4_paidminus Interest paid after FISIM-2,272-2,841-568
D5_paidminus PAYE, income tax etc-25,712-25,605107
D61 minus PRSI, pension contributions etc-22,295-21,696599
D62 plus Social protection, pensions received29,17336,3367,163
D7_net plus net miscellaneous transfers40190-311
B6G equals gross disposable income116,823123,1096,286
D8 plus adjustment for pension fund value1,7871,364-423
P3 minus consumer spending-104,154-94,9109,244
B8G equals gross saving14,45629,56215,106
D9_net plus net capital transfers44447026
P5 minus capital spending-7,249-6,840408
B9 equals net lending (+) /borrowing (-)7,65223,19215,540

Domestic Economy Grows

The economy as a whole grew in 2020, driven by non-financial corporations' higher gross value added. This increase is seen in their higher gross operating surplus (profit), rather than their compensation of employees. Corporations that manufacture goods, or provide information and communication services were responsible for most of this expansion. These economic activities are dominated by multi-national corporations. At the same time, economic sectors dominated by smaller domestic corporations, such as construction and trade, had lower gross value added. More information is contained in the Quarterly National Accounts.

Seasonally adjusted, the final quarter of the year showed a decline in GDP over the third quarter. The quarterly result, like the annual, is driven by multi-national non-financial corporations, specifically, those in the information and communication sector.  

Ireland has a positive current account (CA) balance in the quarter (the negative of B.12 of S.2). This meant that Ireland 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): we invest income here and we invest in the rest of the world. 

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 2 illustrates the trends in, and relationships between the current account balance, gross saving and investment. 

It is immediately obvious how much the current account balance is driven by non-financial corporations (dark blue bars). The last quarter of 2019 saw large imports of intellectual property assets, which drove down the current account balance and drove up investment. This one-off investment was absent in 2020, leaving a positive current account balance. Figure 2 also illustrates the pattern for government and household saving and investment (click on the legend to hide corporations). While government (S.13) has a deficit after capital spending, households (S.1M) have positive net transactions after capital investment, suggesting that domestic sectors are not increasing overall borrowing requirements from the rest of the world.  

S11S12S13S1MCA Balance
2016-Q12.126183090115392.0195182322011-1.372977550767830.176831036004520.705620917553198
2016-Q2-4.791325351145570.2883530315598660.4172798001408191.19320292267983-4.55505188676505
2016-Q3-2.15097817152721.68026974528327-2.279726571394751.97206778763868-1.22378000000001
2016-Q4-10.48517452207751.572612033358951.42105209721444-1.03789221849593-6.29923
2017-Q17.814330410804091.65462215159939-0.7969607837398131.117952519336345.99448
2017-Q2-37.0131923736808-0.5822903802837380.08641567497385931.8849107620679-31.7590036149228
2017-Q310.30304004914851.41118840142417-1.984961980917792.8094478283450514.39533
2017-Q412.02667137502110.8068207567069212.395445968720710.061689097551216312.82749
2018-Q19.092036880065171.44318847169609-1.258829698076471.0154649108152111.16324530725
2018-Q28.04713823383837-0.4095282017463230.09595073997934922.313042192428610.79543530725
2018-Q312.28644373376611.40447717609323-1.559911522685332.7887864673259711.01572530725
2018-Q4-14.6539558321302-0.0702314178587774.13559703118784-0.561783216698914-13.35731469275
2019-Q18.136547736001631.16323306642265-1.59409875163131.875247059207019.15192
2019-Q2-37.1951080653399-0.5747734678927531.117138972445243.20670787078745-32.60324
2019-Q310.41948232724341.78329061066735-1.303053083265462.2900026553547511.60844
2019-Q4-29.78823806146830.1629122558546873.96453380241856-0.164641686804982-28.56431
2020-Q1-14.558021.39346-3.08243.48058-14.55717
2020-Q24.560880.96322-5.8425310.6804411.66312
2020-Q311.524341.93588-6.642734.7938512.70453
2020-Q45.775150.0443100000000001-1.759733.766947.11464
Table S1 Domestic Economy (€million)
ESA CodeDescription2019Q42020Q12020Q22020Q32020Q42020Q4 versus 2019Q4
B1GQ Gross Domestic product92,96691,18082,69198,17294,4631,497
D2/D3 minus taxes on production paid by domestic sectors plus subsidies received-5,768-4,835-2,968-5,181-4,3111,457
D1_paid minus Compensation of Employees paid by domestic enterprises-25,893-26,330-23,172-24,323-26,428-535
B2A3G equals Gross operating surplus & mixed income61,30660,01556,55168,66863,7252,419
D1_rec plus Compensation of Employees received by Irish Households25,84826,28223,09324,24826,337489
D2/D3(b) plus taxes on production received by Government here minus subsidies paid6,1035,1333,1415,5284,593-1,510
D4_net plus net investment income from the rest of the world-20,108-19,965-19,965-29,205-20,593-485
B5G equals Gross National Income73,14971,46562,82069,23874,061913
D5_D6_D7_D8plus net other transfers from rest of world-626-1,094-1,053-752-1,081-455
P3_S13 minus final consumption expenditure of government-11,132-10,099-11,635-12,653-12,725-1,593
P3_S1M minus final consumption expenditure of households-27,503-25,676-19,754-24,265-25,2152,288
B8G equals Gross Saving33,88734,59530,37831,56835,0401,153
D9_net plus net capital transfers from RoW2-579109107
P5 minus capital investment-62,452-49,153-18,715-18,863-27,92634,526
NP minus non-produced asset investment-5,927-4,816-7,910-1,926-3,5922,335
B9 equals net lending (+) /borrowing (-)-34,490-19,3783,76010,7873,63138,121
Table S1 Domestic Economy (€million)
ESA CodeDescription20192020Change
B1GQ Gross Domestic product356,051366,50610,455
D2/D3 minus taxes on production paid by domestic sectors plus subsidies received-24,559-17,2947,265
D1_paid minus Compensation of Employees paid by domestic enterprises-100,367-100,253114
B2A3G equals Gross operating surplus & mixed income231,125248,96017,835
D1_rec plus Compensation of Employees received by Irish Households100,21999,959-260
D2/D3(b) plus taxes on production received by Government here minus subsidies paid25,69218,395-7,297
D4_net plus net investment income from the rest of the world-81,573-89,729-8,156
B5G equals Gross National Income275,463277,5852,122
D5_D6_D7_D8plus net other transfers from rest of world-3,609-3,981-372
P3_S13 minus final consumption expenditure of government-42,306-47,112-4,806
P3_S1M minus final consumption expenditure of households-104,154-94,9109,244
B8G equals Gross Saving125,394131,5826,188
D9_net plus net capital transfers from RoW5119114
P5 minus capital investment-165,801-114,65751,144
NP minus non-produced asset investment-35,145-18,24416,901
B9 equals net lending (+) /borrowing (-)-75,547-1,20074,347

Government borrowing

Measures to deal with the COVID-19 pandemic brought government net borrowing (B.9) in 2020 to its highest level since 2011. The government's finances were hit from both sides, being affected by both lower receipts and higher expenditure. Receipts of taxes on income (D.5, such as PAYE and corporation tax) were down, but there was an even larger decline in the government's income of VAT-type (D.2) taxes. On the expenditure side, the government spent heavily on supporting household incomes. This support came directly through social transfers (D.62) such as the Pandemic Unemployment Payment, and indirectly through the Temporary/Employment Wage Subsidy Scheme (D.3) which was paid to employers and thence to households. Government spending also increased on providing services (P.3). All of this left government needing to borrow in 2020 after two years of net lending. 

Government balance (B.9)/quarterly GDP
2017-Q1-1.3670053176676
Q2-0.131921243293256
Q3-2.58144955525217
Q42.63959417338
2018-Q1-1.81660234791299
Q2-0.552238728645387
Q3-1.91879563136079
Q44.69128492867935
2019-Q1-2.16393420730191
Q20.988990019872304
Q3-1.36171009367384
Q43.96703157138007
2020-Q1-3.72707135773052
Q2-7.45911508243255
Q3-7.00192162636922
Q4-2.04908409816396

The estimates in the Sector Accounts were first published on 1 April 2021 and revised on 13 April 2021 to incorporate new data on government finances in 2020. This included an upward revision of social transfers paid (uses) totalling €1.4bn over 2020, with a corresponding decline in disposable income and saving and an increase in net borrowing in the year, compared to the figures stated in the 1 April release. We apologise for any inconvenience caused.

Table S13 General Government (€million)
ESA CodeDescription2019Q42020Q12020Q22020Q32020Q42020Q4 versus 2019Q4
B2A3G Gross Operating Surplus (Depreciation and rental)1,3311,3631,3641,3641,36434
D2 plus taxes on production received6,6495,5785,2957,1875,986-663
D3 minus subsidies paid-546-445-2,154-1,659-1,393-847
D4_rec plus investment income received1984788015676-123
D4_paidminus Interest paid after FISIM-1,054-989-903-944-847207
D5 plus income and wealth taxes13,7886,87110,1477,14813,398-389
D61 plus PRSI, pension contributions received4,2804,0123,5453,9594,263-17
D62 minus Social protection, pensions paid-6,636-6,156-8,980-7,642-8,616-1,980
D7_net plus net miscellaneous transfers-786-923-1,073-688-952-166
B6G equals gross disposable income17,2239,3598,1218,88113,279-3,944
P3 minus final consumption expenditure-11,132-10,099-11,635-12,653-12,725-1,593
D1 of which compensation of employees-5,932-6,066-6,153-6,016-6,612-679
B8G equals gross saving6,091-740-3,515-3,772554-5,537
D9_net plus net capital transfers-277-316-325-231-176101
P5 minus capital spending-2,127-2,343-2,328-2,870-2,314-187
NP plus disposal of non-produced assets000000
B9 equals net lending (+) /borrowing (-)3,688-3,398-6,168-6,874-1,936-5,624
Table S13 General Government (€million)
ESA CodeDescription20192020Change
B2A3G Gross Operating Surplus (Depreciation and rental)5,3225,456134
D2 plus taxes on production received27,40524,047-3,358
D3 minus subsidies paid-1,713-5,652-3,939
D4_rec plus investment income received1,6071,159-448
D4_paidminus Interest paid after FISIM-4,455-3,684771
D5 plus income and wealth taxes36,62837,564936
D61 plus PRSI, pension contributions received15,84715,778-68
D62 minus Social protection, pensions paid-24,169-31,393-7,224
D7_net plus net miscellaneous transfers-3,740-3,635105
B6G equals gross disposable income52,73239,640-13,092
P3 minus final consumption expenditure-42,306-47,112-4,806
D1 of which compensation of employees-23,009-24,847-1,838
B8G equals gross saving10,426-7,473-17,898
D9_net plus net capital transfers-904-1,049-145
P5 minus capital spending-8,241-9,855-1,614
NP plus disposal of non-produced assets1400-140
B9 equals net lending (+) /borrowing (-)1,421-18,376-19,797

Non-Financial Corporations (S.11)

Compared to the final quarter of 2019, the latest quarter shows gross value added (GVA, B.1g) of non-financial corporations largely unchanged. Behind this, there are significant shifts in its composition. GVA is made up of compensation of employees (D.1) and gross operating surplus (GOS, B.2A3G). The employee part was down on 2019, even though it includes €1bn in subsidies from government. On the other hand, the operating surplus was up on Q4 last year.

COVID-19 has different impacts across economic activity sectors: activities predominantly domestically-owned, such as hospitality, have fared worse than foreign-dominated sectors, such as information technology (see Figure 4). The Quarterly National Accounts show gross value added by economic activity (NACE A10) with analysis of the multi-national dominated sectors. 

The increased gross operating surplus was offset by increased consumption of fixed capital (CFC, P51c), as the large fixed assets acquired in recent years declined in value. This resulted in a smaller net operating surplus, which in turn was a factor in declines in tax (D.5) and dividends and reinvested earnings (D.42, D.43) paid. The Gross Saving (B.8g) of the sector was, like the gross operating surplus, up on 2019-Q4. Fixed capital formation was lower than the extraordinary level of last year's final quarter, but still a healthy €22bn. This left the sector as a net lender in 2020-Q4.  

For the year as a whole, the story for non-financial corporations is similar to the last quarter in many ways. Compensation of employees is down compared to 2019. Gross operating surplus increased. For the four quarters in total, unlike for Quarter 4, GOS increased faster than CFC leaving a larger net operating surplus than in 2019. Corporation tax increased, as did dividends and reinvested earnings paid to other countries. In 2020, as in the last quarter, fixed capital formation was down on last year's very high total. However, in the annual total, the spending on produced and non-produced assets exceeded gross saving, which left the sector a net borrower.

Foreign-owned MNE dominatedOther
2019-Q439.26453389249.572197179
2020-Q444.56270538545.172634091
Table S11 Non-Financial Corporations (€million)
ESA CodeDescription2019Q42020Q12020Q22020Q32020Q42020Q4 versus 2019Q4
B1G Gross value added67,22967,05558,27370,73667,402173
D1 less compensation of employees-16,948-17,205-14,450-15,543-16,825123
D2/D3 plus subsidies less taxes on production-306-3961,5431,1278001,106
B2A3G equals gross operating surplus49,97649,45445,36656,31951,3781,402
D4_rec plus investment income received5,5386,4582,9474,3864,879-659
D4_paidminus investment income paid-25,341-26,370-24,319-34,013-24,530811
D42_D43of which dividends and reinvested earnings paid-21,726-22,612-20,481-30,251-20,846880
D5 minus corporation tax etc-3,914-697-4,009-1,256-3,588326
D7_net plus net miscellaneous transfers-142-194-159-214-195-52
B8G equals gross saving26,11728,65219,82725,22227,9451,828
D9_net plus net capital transfers18319015613821430
P5 minus capital investment expenditure-55,905-43,210-15,266-13,698-22,17033,735
NP minus expenditure on non-produced assets-5,927-4,816-7,910-1,926-3,5922,335
B9 equals net lending (+) /borrowing (-)-35,532-19,184-3,1939,7362,39737,929
Table S11 Non-Financial Corporations (€million)
ESA CodeDescription20192020Change
B1G Gross value added253,209263,46610,257
D1 less compensation of employees-65,680-64,0231,658
D2/D3 plus subsidies less taxes on production-1,6073,0744,681
B2A3G equals gross operating surplus185,921202,51816,596
D4_rec plus investment income received19,80018,670-1,129
D4_paidminus investment income paid-100,702-109,231-8,528
D42_D43of which dividends and reinvested earnings paid-87,765-94,189-6,424
D5 minus corporation tax etc-8,428-9,549-1,122
D7_net plus net miscellaneous transfers-566-762-195
B8G equals gross saving96,025101,6465,621
D9_net plus net capital transfers465697233
P5 minus capital investment expenditure-144,452-94,34350,109
NP minus expenditure on non-produced assets-35,285-18,24417,041
B9 equals net lending (+) /borrowing (-)-83,247-10,24473,003

Financial Corporations (S.12)

Financial corporations (S.12) showed large decreases in interest (D.41) received and other investment income (D.44) paid in 2020, leaving their net income at a similar level to 2019. Most of the investment income of S.12 relates to transactions with the rest of the world. As the international investment position shows, the values of the underlying assets remain close to or above the 2019 position, but the income on them has decreased. Further details of are given in the International Accounts

Table S12 Financial Corporations (€million)
ESA CodeDescription2019Q42020Q12020Q22020Q32020Q42020Q4 versus 2019Q4
B1G Gross value added5,1784,7474,4194,8595,20830
D1 less compensation of employees-2,151-2,184-1,834-1,973-2,13615
D2/D3 plus subsidies less taxes on production-206-97-225-62-211-5
B2A3G equals gross operating surplus2,8212,4652,3592,8232,86140
D4_rec plus investment income received21,53421,33520,94619,63618,282-3,253
D41_rec of which interest rec.18,13617,25315,99915,05414,886-3,250
D42_D43_rec                  dividends and reinvested earnings rec.2,8953,4224,3123,9852,97681
D44_rec                  other investment income rec.503660635598419-84
D4_paid minus investment income paid-21,888-21,321-20,666-19,193-19,1542,735
D41_paid of which interest paid-7,428-7,120-6,686-6,663-6,3511,077
D42_D43_paid                dividends and reinvested earnings paid-1,279-1,647-1,847-1,266-2,144-865
D44_paid                  other investment income paid-13,182-12,554-12,133-11,265-10,6592,523
D5 minus corporation tax etc-1,153-176-1,019-319-909245
D61 plus pension contributions received1,5911,7161,4521,3641,385-206
D62 minus pension benefits paid-1,153-1,285-1,083-1,060-1,12627
D8 minus adjustment for pension saving of households-438-431-369-304-259179
D7_net plus net miscellaneous transfers-12-12-13-13-13-0
B8G equals gross saving1,3012,2911,6082,9341,067-233
D9_net plus net capital transfers000000
P5 minus capital investment expenditure-1,138-897-645-999-1,023115
B9 equals net lending (+) /borrowing (-)1631,3939631,93644-119
Table S12 Financial Corporations (€million)
ESA CodeDescription20192020Change
B1G Gross value added19,28419,232-52
D1 less compensation of employees-8,339-8,128211
D2/D3 plus subsidies less taxes on production-625-59629
B2A3G equals gross operating surplus10,32010,508188
D4_rec plus investment income received92,53280,198-12,334
D41_rec of which interest rec.71,66863,191-8,477
D42_D43_rec                  dividends and reinvested earnings rec.18,12814,696-3,432
D44_rec                  other investment income rec.2,7362,311-425
D4_paid minus investment income paid-93,875-80,33313,542
D41_paid of which interest paid-28,871-26,8192,052
D42_D43_paid                dividends and reinvested earnings paid-8,477-6,9041,574
D44_paid                  other investment income paid-56,527-46,6119,916
D5 minus corporation tax etc-2,487-2,42364
D61 plus pension contributions received6,4485,917-530
D62 minus pension benefits paid-4,661-4,554107
D8 minus adjustment for pension saving of households-1,787-1,364423
D7_net plus net miscellaneous transfers-50-50-0
B8G equals gross saving6,4407,9011,460
D9_net plus net capital transfers000
P5 minus capital investment expenditure-3,906-3,564342
B9 equals net lending (+) /borrowing (-)2,5354,3371,802

Rest of the World Sector (S.2)

As noted in the discussion of the Domestic Economy, service imports (P.7) from the rest of the world (S.2) were down in the last three months of 2020 compared to the same period last year owing to the absence of large intellectual property imports. There was also an increase in exports compared to 2019-Q4. This left a large negative balance of goods and services (B.11) for the rest of the world (and so a positive balance for Ireland). Even after the large profit outflows of foreign-owned corporations, the current external balance (B.12, which is the equal and opposite of the current account balance in International Accounts) was negative for the rest of the world in Q4. As we follow the sequence of accounts on down to net lending, the rest of the world was a net borrower (B.9) in the quarter. 

In 2020 as a whole, as in the last quarter, imports were down and exports were up. However, after accounting for the income flowing out to foreign investors, and the transactions in non-produced assets, the rest of the world was a net lender to Ireland: most of that net lending was to non-financial corporations. Further details on transactions with the rest of the world are provided in the International Accounts

Table S2 Rest of the World (€million)
ESA CodeDescription2019Q42020Q12020Q22020Q32020Q42020Q4 versus 2019Q4
P7 Imports129,868105,91175,14771,731105,192-24,676
P6 minus exports-121,747-112,164-107,734-114,121-133,790-12,043
B11 equals balance of goods and services8,121-6,253-32,586-42,390-28,598-36,718
D1_net plus net compensation of employees to rest of world444979769147
D2/D3 plus taxes on production received less subsidies paid by rest of world-335-299-173-348-28353
D4_net plus investment income to rest of world20,10819,96519,96529,20520,593485
D5_D6_D7_D8plus net other current transfers to rest of world6261,0941,0537521,081455
B12 equals current external balance28,56414,557-11,663-12,705-7,115-35,679
D9_net plus net capital transfers to rest of world-25-7-9-109-107
NP plus non-produced assets disposal by rest of world5,9274,8167,9101,9263,592-2,335
B9 equals net lending (+) /borrowing (-)34,49019,378-3,760-10,787-3,631-38,121
Table S2 Rest of the World (€million)
ESA CodeDescription20192020Change
P7 Imports405,076357,981-47,095
P6 minus exports-448,866-467,808-18,942
B11 equals balance of goods and services-43,791-109,827-66,036
D1_net plus net compensation of employees to rest of world149294145
D2/D3 plus taxes on production received less subsidies paid by rest of world-1,133-1,10231
D4_net plus investment income to rest of world81,57389,7298,156
D5_D6_D7_D8plus net other current transfers to rest of world3,6093,981372
B12 equals current external balance40,407-16,925-57,332
D9_net plus net capital transfers to rest of world-5-119-114
NP plus non-produced assets disposal by rest of world35,14518,244-16,901
B9 equals net lending (+) /borrowing (-)75,5471,200-74,347

Tables by Transaction

Table 1 Quarterly Accounts by Institutional Sector, Summary 2020Q4 (€million)
 S2 Rest of WorldS1 Total EconomyS1N Not SectorisedS11 Non-Financial CorporationsS12 Financial CorporationsS13 General GovernmentS14+S15 Households incl. NPISH
(a) B1G Gross Domestic Product/Gross Value Added
2019Q1               84,9296,01859,5114,4836,9437,975
2019Q2               84,9315,16459,6714,6517,1648,280
2019Q3               93,2255,91266,7974,9726,9618,583
2019Q4               92,9664,13067,2295,1787,2639,167
2019               356,05121,223253,20919,28428,33134,004
2020Q1               91,1803,62367,0554,7477,4298,326
2020Q2               82,6915,17558,2734,4197,5177,307
2020Q3               98,1726,97970,7364,8597,3818,218
2020Q4               94,4634,72867,4025,2087,9769,149
2020               366,50620,504263,46619,23230,30333,000
 
(b) B2A3G Gross Operating Surplus and Gross Mixed income
2019Q1               53,533-21442,8452,3251,3317,247
2019Q2               54,75742142,9632,3561,3317,686
2019Q3               61,528-79150,1372,8191,3318,033
2019Q4               61,306-1,36949,9762,8211,3318,548
2019               231,125-1,953185,92110,3205,32231,514
2020Q1               60,015-89549,4542,4651,3637,629
2020Q2               56,55165145,3662,3591,3646,811
2020Q3               68,66854756,3192,8231,3647,614
2020Q4               63,725-35651,3782,8611,3648,478
2020               248,960-54202,51810,5085,45630,532
 
(c) D1_D4 Net Primary Income
2019Q1               11,771               -19,480-1585,87225,537
2019Q2               9,102               -21,244-1,2025,37826,170
2019Q3               11,623               -20,3763726,34625,281
2019Q4               11,843               -19,803-3545,24726,752
2019               44,338               -80,903-1,34322,843103,740
2020Q1               11,449               -19,911144,19127,156
2020Q2               6,269               -21,3722803,11724,244
2020Q3               570               -29,6264434,74025,014
2020Q4               10,337               -19,651-8723,82127,038
2020               28,625               -90,561-13515,870103,451
 
(d) B5G Gross National Income = (b + c)
2019Q1               65,304-21423,3652,1677,20332,784
2019Q2               63,85942121,7181,1546,70933,857
2019Q3               73,151-79129,7623,1907,67733,313
2019Q4               73,149-1,36930,1732,4666,57835,300
2019               275,463-1,953105,0198,97728,166135,255
2020Q1               71,465-89529,5422,4795,55434,785
2020Q2               62,82065123,9942,6394,48231,055
2020Q3               69,23854726,6933,2666,10532,628
2020Q4               74,061-35631,7281,9895,18635,515
2020               277,585-54111,95710,37321,326133,983
 
(e) D5_D7 Net Current Transfers
2019Q1               -1,367               -5494452,871-4,134
2019Q2               -699               -2,959-3876,714-4,067
2019Q3               -917               -1,429-804,335-3,744
2019Q4               -626               -4,057-72710,646-6,487
2019               -3,609               -8,994-74924,566-18,432
2020Q1               -1,094               -8902433,805-4,252
2020Q2               -1,053               -4,168-6623,639138
2020Q3               -752               -1,471-282,776-2,030
2020Q4               -1,081               -3,783-6628,093-4,730
2020               -3,981               -10,311-1,10918,314-10,874
 
(f) B6G Gross Disposable Income = (d + e)
2019Q1               63,937-21422,8162,61110,07428,651
2019Q2               63,16042118,76076613,42329,790
2019Q3               72,234-79128,3333,11112,01229,569
2019Q4               72,523-1,36926,1171,73917,22328,813
2019               271,853-1,95396,0258,22752,732116,823
2020Q1               70,371-89528,6522,7229,35930,533
2020Q2               61,76765119,8271,9778,12131,192
2020Q3               68,48654725,2223,2388,88130,598
2020Q4               72,980-35627,9451,32713,27930,786
2020               273,604-54101,6469,26439,640123,109
 
(g) P3_D8 Use of Disposable Income
2019Q1               -35,295               0-577-9,578-25,140
2019Q2               -35,687               0-459-10,306-24,923
2019Q3               -36,842               0-313-11,290-25,239
2019Q4               -38,635               0-438-11,132-27,065
2019               -146,460               0-1,787-42,306-102,367
2020Q1               -35,775               0-431-10,099-25,245
2020Q2               -31,389               0-369-11,635-19,385
2020Q3               -36,919               0-304-12,653-23,961
2020Q4               -37,940               0-259-12,725-24,956
2020               -142,023               0-1,364-47,112-93,547
 
(h) B8G Gross Saving = f + g
2019Q1               28,642-21422,8162,0354963,511
2019Q2               27,47242118,7603083,1174,866
2019Q3               35,392-79128,3332,7977224,331
2019Q4               33,887-1,36926,1171,3016,0911,748
2019               125,394-1,95396,0256,44010,42614,456
2020Q1               34,595-89528,6522,291-7405,288
2020Q2               30,37865119,8271,608-3,51511,808
2020Q3               31,56854725,2222,934-3,7726,636
2020Q4               35,040-35627,9451,0675545,830
2020               131,582-54101,6467,901-7,47329,562
 
(i) D9_NP_P5 Changes in Capital Account
2019Q1               -4,557-214-2,682-410-1,218-33
2019Q2               -55,588421-54,423-419-1,161-5
2019Q3               -7,005-791-4,306-548-876-484
2019Q4               -45,936-1,369-42,334-660-1,288-285
2019               -113,086-1,953-103,745-2,038-4,543-807
2020Q1               -30,806-895-27,784-405-1,543-179
2020Q2               -3,234651-2,760-147-1,538560
2020Q3               2,8115474,968-497-1,986-221
2020Q4               -7,508-356-4,830-515-1,374-434
2020               -38,738-54-30,405-1,564-6,441-274
 
(j) P51C Consumption of Fixed Capital
2019Q1               21,704               18,6464611,1151,481
2019Q2               21,790               18,7244631,1151,487
2019Q3               21,920               18,8424661,1151,496
2019Q4               22,441               19,3154781,1151,534
2019               87,854               75,5271,8684,4625,997
2020Q1               23,167               20,0524931,1151,507
2020Q2               23,384               20,2604971,1151,511
2020Q3               23,592               20,4555021,1151,520
2020Q4               23,901               20,7195081,1151,558
2020               94,044               81,4852,0004,4626,096
 
(k) B9 Net Lending (+)/Net Borrowing (-) = (h + i) - j
2019Q1-2,3812,381-4291,4881,163-1,8381,997
2019Q249,905-49,905843-54,388-5758403,374
2019Q3-6,4676,467-1,5815,1841,783-1,2692,350
2019Q434,490-34,490-2,739-35,5321633,688-70
201975,547-75,547-3,906-83,2472,5351,4217,652
2020Q119,378-19,378-1,791-19,1841,393-3,3983,602
2020Q2-3,7603,7601,301-3,193963-6,16810,857
2020Q3-10,78710,7871,0939,7361,936-6,8744,895
2020Q4-3,6313,631-7122,39744-1,9363,838
20201,200-1,200-108-10,2444,337-18,37623,192
 
Table 1.2 Generation of  Income Account (€million)
Resources (Received)S2 Rest of WorldS1 Total EconomyS1N Not SectorisedS11 Non-Financial CorporationsS12 Financial CorporationsS13 General GovernmentS14+S15 Households incl. NPISH
B1G Gross Domestic Product/Gross Value Added               94,4634,72867,4025,2087,9769,149
D3 Subsidies               1,7643001,10800355
Uses (Paid)
D1 Compensation of Employees3826,428               16,8252,1366,612855
D2 Taxes on Production and Imports               6,0745,3843082110171
B2A3GGross Operating Surplus and Gross Mixed income               63,725-35651,3782,8611,3648,478
Table 1.3 Allocation of Primary Income Account (€million)
Resources (Received)S2 Rest of WorldS1 Total EconomyS1N Not SectorisedS11 Non-Financial CorporationsS12 Financial CorporationsS13 General GovernmentS14+S15 Households incl. NPISH
B2A3GGross Operating Surplus and Gross Mixed income               63,725-35651,3782,8611,3648,478
D1 Compensation of Employees12926,337                                                            26,337
D2 Taxes on Production and Imports885,986                                             5,986               
D4 Property Income41,97024,642               4,87918,282761,406
D41 Interest9,07116,184               64714,88628622
D42 Distributed Income of Corporations5,5224,692               5913,49930572
D43 Reinvested Earnings on Direct Foreign Investment16,8663,113               3,636-52300
D44 Property Income attributed to Insurance Policy Holders10,511566               54190142
D45 Rents               87               001770
Uses (Paid)
D3 Subsidies3711,393                                             1,393               
D4 Property Income21,37745,235               24,53019,154847705
D41 Interest13,75511,499               3,6666,351847635
D42 Distributed Income of Corporations4,0906,124               5,665459                              
D43 Reinvested Earnings on Direct Foreign Investment3,11316,866               15,1811,685                              
D44 Property Income attributed to Insurance Policy Holders41810,659               010,6590               
D45 Rents               87               170070
B5G Gross National Income               74,061-35631,7281,9895,18635,515
Table 1.5 Secondary Distribution of Income Account (€million)
Resources (Received)S2 Rest of WorldS1 Total EconomyS1N Not SectorisedS11 Non-Financial CorporationsS12 Financial CorporationsS13 General GovernmentS14+S15 Households incl. NPISH
B5GGross National Income               74,061-35631,7281,9895,18635,515
D5 Current Taxes on Income, Wealth, etc613,398                                             13,398               
D61Social Contributions05,648               01,3854,2630
D62Social Benefits other than Social Transfers in kind789,839                                                            9,839
D7 Other Current Transfers2,4404,099               1852,3041741,436
Uses (Paid)
D5 Current Taxes on Income, Wealth, etc213,402               3,58890908,906
D61Social Contributions05,648                                                            5,648
D62Social Benefits other than Social Transfers in kind1769,742               01,1268,6160
D7 Other Current Transfers1,2665,273               3792,3171,1261,451
B6GGross Disposable Income               72,980-35627,9451,32713,27930,786
Table 1.6 Secondary Distribution of Income Account (€million)
Resources (Received)S2 Rest of WorldS1 Total EconomyS1N Not SectorisedS11 Non-Financial CorporationsS12 Financial CorporationsS13 General GovernmentS14+S15 Households incl. NPISH
B6GGross Disposable Income               72,980-35627,9451,32713,27930,786
D8 Adjustment for the Change in Pension Entitlements0259                                                            259
Uses (Paid)
P3 Final Consumption Expenditure               37,940                                             12,72525,215
D8 Adjustment for the Change in Pension Entitlements0259               025900
B8GGross Saving               35,040-35627,9451,0675545,830
Table 1.7 External Account (€million)
Resources (Received)S2 Rest of WorldS1 Total Economy
P7 Imports of Goods and Services105,192               
D1_D8Primary Incomes and Current Transfers44,71291,972
Uses (Paid)
P6 Exports of Goods and Services133,790               
B11 External Balance of Goods & Services-28,598               
D1_D8Primary Incomes and Current Transfers23,229113,455
B12 Current External Balance-7,115               
Table 1.8 Change in Net Worth due to Saving and Capital Transfers Account (€million)
LiabilitiesS2 Rest of WorldS1 Total EconomyS1N Not SectorisedS11 Non-Financial CorporationsS12 Financial CorporationsS13 General GovernmentS14+S15 Households incl. NPISH
B8G Gross Saving               35,040-35627,9451,0675545,830
B12 Current External Balance-7,115                                                                                          
D9 Capital Transfers51,227               3280526374
Assets
D9 Capital Transfers1141,119               1140702303
P51CConsumption of Fixed Capital               23,901               20,7195081,1151,558
B101Changes in Net Worth due to Saving and Capital Transfers-7,22311,248-3567,440559-7384,343
Table 1.9 Secondary Distribution of Income Account (€million)
LiabilitiesS2 Rest of WorldS1 Total EconomyS1N Not SectorisedS11 Non-Financial CorporationsS12 Financial CorporationsS13 General GovernmentS14+S15 Households incl. NPISH
B101Changes in Net Worth due to Saving and Capital Transfers-7,22311,248-3567,440559-7384,343
P51CConsumption of Fixed Capital               23,901               20,7195081,1151,558
Assets
P5 Gross Capital Formation               27,92635622,1701,0232,3142,063
NP Acquisitions less Disposals of Non-Produced Assets-3,5923,592               3,592000
B9 Net Lending (+)/Net Borrowing (-)-3,6313,631-7122,39744-1,9363,838

Background Notes

Revisions in this release

Revisions to the first three quarters of 2020 have been made in line with the main Quarterly National Accounts, International Accounts and Government Accounts. This release was revised on 13 April, having been first published on 1 April 2021.

Seasonally adjusting the Accounts will be challenging until the full scale and shape of the impact COVID-19 has on the time series is better understood. Users should be aware that as further data observations become available in the months and quarters ahead, revisions to the seasonal adjustment models may result in revisions to the quarterly seasonally adjusted series.

Description of Institutional Sectors

In the Sector Accounts, Institutional Sectors are distinguished not in terms of the nature of their production activity (such as agriculture, industry, services, etc.) but rather in terms primarily of the institutional form of the units that make them up. Thus, companies, whether engaged in commercial non-financial or financial business, are grouped in a different sector from households, even though the latter are in many cases also engaged in commercial production, and from government or other non-market producers such as voluntary agencies.

Institutional Sectors

The classification system is that of the European System of Accounts 2010 (ESA2010). The sectors and sub-sectors distinguished in the present publication are as follows:

S.1 Resident Economy is the sum of all the sectors of the domestic economy.

S.11 Non-Financial Corporations are companies producing goods and non-financial services on a commercial basis. They include government-controlled companies, private companies and other corporate forms of business, whether owned by residents or non-residents or both. In particular, therefore, Irish subsidiaries of foreign companies and the Irish branches of foreign companies operating in Ireland on a branch basis are included. The foreign subsidiaries of Irish companies and the foreign branches of Irish companies operating abroad are excluded. Large partnerships such as big law and accounting firms, are included in S.11, even though they are not incorporated they are quasi-corporations. Entities which operate as holding companies for non-financial corporations are classified in the financial sector and not here.

S.12 Financial Corporations are corporate bodies producing financial services on a commercial basis. As with S.11, they can take various legal forms, with a range of ownership arrangements. They include banks, insurance corporations and pension funds.

S.13 General Government consists of central and local government. Central government includes the Ireland Strategic Investment Fund (formerly the NPRF), and non-commercial agencies owned and funded by government, but does not include commercial state-owned companies (which are proper to S.11 or S.12 as appropriate). The Register of Public Sector Bodies sets out which bodies are included here.

S.1M: S.14 + S.15 Households and Non-Profit Institutions Serving Households. S.14 accounts are the economic transactions of people in their capacity as consumers, employees, self-employed workers, pensioners and recipients of other income and transfers. S.15 consists of non-profit institutions such as charities and non-commercial agencies not owned by the government, such as sports clubs and churches.

S.2 Rest of World. This sector represents the economy's transactions with non-residents. The conceptual definition is the same as in the Balance of Payments (BOP) statistics. In particular, non-residents include foreign subsidiaries of Irish companies, the foreign branches of Irish companies that operate abroad on a branch basis, and the head offices of foreign companies that operate in Ireland on a branch basis.

S.1N Not Sectorised. In the non-financial accounts an additional residual sector is used to report taxes and subsidies on products (D.21, D.31) in the Generation of Income Account (Account 1.2) as it is not possible to allocate these amounts to Institutional Sectors. In addition, throughout these accounts S.1N is used to report the amounts that appear as the statistical discrepancy in the National Income and Expenditure GDP accounts, arising from the use of two independent estimates of GDP (from the Income and Expenditure approaches). In the Annual National Accounts NIE tables 3 and 5, the official estimate of GDP is reported as the average of the two measures, and the discrepancy is therefore displayed as half the difference between the two independent estimates (and thus with different signs in the two tables). The discrepancy is projected forward on a quarterly basis in line with the trends in the Expenditure components and is presented in Table 2 of the Quarterly National Accounts. In the Quarterly Sector Accounts it appears in Gross Domestic Product, the opening item in the Generation of Income Account and is then carried through successive accounts via the balancing item.

Description of Detailed Non-Financial Accounts

Sector Accounts present a coherent overview of all economic processes and the roles played by the various sectors. Each economic process is described in a separate account. The accounts describe successively: generation of income, primary and secondary income distribution, final consumption, redistribution by means of capital transfers, and capital formation. Note that the Production Account (1.1) from the Annual Accounts is not included in these quarterly accounts as the data is not available on a quarterly basis. The accounts record economic transactions, distinguishing between uses and resources (e.g. the resources side of the transaction category Interest (D.41) records the amounts of interest receivable by the different sectors of the economy and the uses side shows interest payable) with a special item to balance the two sides of each account. By passing on the balancing item from one account to the next a connection is created between successive accounts.

The accounts are compiled for the total economy and include accounts for separate domestic sectors and the Rest of World sector. In this way the sector accounts describe:

  • for each economic process the role of each sector, for instance General Government in income redistribution and Financial Corporations in financing.
  • for each sector all economic transactions and their relation with other domestic sectors and the Rest of World.

The successive accounts are explained in more detail below. 

Current Accounts

1.1 Production Account

This account is not presented in the Quarterly Non-Financial Accounts as quarterly data is not available.

1.2 Generation of Income Account

This account displays the transactions through which Gross Domestic Product at market prices is distributed to labour (compensation of employees), capital (operating surplus) and government (the balance of taxes and subsidies on production). The balancing item for the Household and NPISH sector in this account is called mixed income, because apart from operating surplus it also contains compensation for work by self-employed persons and their family members. Gross Operating Surplus/Gross Mixed Income (B.2g/B.3g) is the balancing item for the entire account.

1.3 Allocation of Primary Income Account

This account records, as resources, the income from direct participation in the production process, as well as property income received in exchange for the use of land, financial resources and other intangible assets. In addition, this account records the taxes on production and imports received by the government. On the uses side, property income (including interest, dividends, reinvested earnings and land rent) is recorded as well as the subsidies paid by the government.

On this account the interest paid and received are recorded excluding imputed bank services (financial intermediation services indirectly measured - FISIM). In the national accounts insurance technical reserves are seen as a liability of insurance enterprises and pension funds to policyholders. Therefore, the receipts from investing these reserves are recorded as payments from insurance enterprises and pension funds to households, under Other Investment Income (D.44). The balancing item of this account for each sector is Gross National Income (B.5g). The Primary Income for the total economy is the National Income.

1.4 Memorandum-Entrepreneurial Income Account

This account is not presented in the Quarterly series.

1.5 Secondary Distribution of Income Account

The Secondary Distribution of Income Account shows how primary income is redistributed by means of current taxes on income and wealth, social contributions (including contributions to pension schemes), social benefits (including pension benefits) and other current transfers. The balancing item of this account is Gross Disposable Income (B.6g). For the consuming sectors (Households, NPISH and General Government) this item is passed on to Use of Disposable Income Account (1.6). For the other sectors the disposable income is generally equal to saving. This is then passed on to the Change in Net Worth due to Saving and Capital Transfers Account (1.8).

1.6 Use of Disposable Income Account

This account shows the element of disposable income that is spent on final consumption and also the element that is saved. As mentioned above, final consumption only exists for Households, NPISH and General Government. The net equity of Households in pension funds is seen as a financial asset that belongs to Households. Changes in these reserves need to be included in the saving of Households. However, contributions to pension schemes and pension benefits have already been recorded on the Secondary Distribution of Income Account (1.5) as social contributions and social benefits. Therefore, an adjustment is needed in the saving of Households to include the change in pension funds reserves on which they have a definite claim. This adjustment is called Adjustment for the Change in Pension Entitlements (D.8). There is no need for a similar adjustment concerning life insurance because life insurance premiums and benefits are not recorded as current transactions. The balancing item for this account is Gross Saving (B.8g).

1.7 External Account

This account records the summarised transactions of the Rest of World Sector (S.2), including on the uses side exports of goods and services, primary incomes and current transfers receivable. The resources side of this account includes imports of goods and services together with primary incomes and transfers payable. The balancing item is Current External Balance (B.12), which records the balance on current accounts with the Rest of World.

Capital Accounts

1.8 Change in Net Worth due to Saving and Capital Transfers

On this account the capital transfers are recorded and combined with gross saving and the current external balance. The resulting balancing item is Changes in Net Worth due to Saving and Capital Transfers (B.10.1).

1.9 Acquisition of Non-Financial Assets Account

On this account, Gross Fixed Capital Formation (P.51), Changes in Inventories (P.52) and Acquisitions less Disposals of Valuables and Non-Produced Non-Financial Assets (N.P.) are recorded among the uses. The decline in the value of fixed capital goods caused by consumption of fixed capital goods is recorded among the resources (P.51c). The balancing item is B.9, Net Lending (shown as a positive number) or Borrowing (shown as a negative). It shows the amount a sector can invest, or has to borrow, as a result of its current and capital transactions.

Seasonal Adjustment

Seasonal adjustment is conducted using the direct seasonal adjustment approach. Under this approach, each individual time series is independently adjusted, i.e. aggregate series are adjusted without reference to the component series.

As part of the seasonal adjustment process, ARIMA models are identified for each series based on unadjusted data spanning Q1 1999 to the first quarter of this year. These models are then applied to the entire series in the next three quarters. Seasonal factors and the parameters of the ARIMA models are updated each quarter.

The adjustments are completed by applying the X-13-ARIMA model, developed by the U.S. Census Bureau to the unadjusted data. This methodology estimates seasonal factors while also taking into consideration factors that impact on the quality of the seasonal adjustment such as, for example:

  • calendar effects, e.g. the timing of Easter
  • outliers, temporary changes and level shifts in the series

For additional information on the use of X-13-ARIMA, see https://www.census.gov/srd/www/x13as/.

Derived Seasonally Adjusted Household Saving Ratio

Seasonally adjusted estimates of Household Saving are compiled using the indirect seasonal adjustment approach. Under this approach the two main aggregates, Household Disposable Income (B.6g + D.8) and Final Consumption Expenditure of Households (P.3), are independently adjusted. The derived saving is the difference between the two adjusted series of Household Disposable Income and Final Expenditure of Households. This method for estimating the seasonally adjusted value for a small net residual of two large aggregates, such as Household Saving, is considered to be a more appropriate estimation procedure.

The use of these saving either for financial investment or debt reduction is not recorded in these accounts but is recorded in the financial account (see Quarterly Financial Accounts published by the Central Bank of Ireland and Institutional Sector Accounts Non-Financial and Financial 2019 for annual integrated financial and non financial accounts).

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