Economy expanded by 26% last year, says CSO. Largely driven by aircraft purchases and assets re-locating to Ireland. Employment steady.
— David Murphy (@davidmurphyRTE) July 12, 2016
Ireland debt-to-GDP ratio will fall to less than 80% as a result of new economic figures, says CSO.
— David Murphy (@davidmurphyRTE) July 12, 2016
Yikes.
View CSO figures in full here
Apparently it’s GE Capital Aviation Services that became Irish last year, producing such a big spike in Irish GDP, GNP and IP.
— Ronan Lyons (@ronanlyons) July 12, 2016
Boeing.
UPDATE:
During RTÉ’s News at One, RTÉ’s Business Editor David Murphy spoke to Audrey Carville about the figures.
From the interview…
Audrey Carville: “David, has it really grown by so much?”
David Murphy: “No. I think the issue here is Audrey, that what’s happened is that when the CSO does its figures it has to take account of what companies are doing. And, normally, if a company invests in an asset like a factory then that will result in more employment and boost the economy. So those assets are very important. But what’s happened is that a number of large, international companies have bought aircraft, they’ve done corporate restructuring and some companies have located assets to Ireland for the first time. And as a result, it’s had a one-off effect on the balance sheet of the entire country and it’s distorted the figures for the entire economy quite significantly. Showing that the economy, on the face of it, would have appeared to have expanded by 26% last year. Now, were that to have happened, in reality, people would be feeling 26% richer but they’re not.”
Listen back in full here
Well done FG!
Well done FG for buying a load of planes last year?
Great. The unsecured bond holders who gambled and lost on Anglo Irish bank, will get their money back even quicker.
I bet you hate sunny days too
Blind optimism is for fools. Eoin is just telling it like it is.
Moyler! Surprised you even see anything other than the sun, what with your blinkers on n’all.
How so? And how can you “lose money” and “get it back”? Very odd.
How so? Strange connection to make. Also curious to understand how, as you suggest, it’s possible to lose money and then get it back?
Great news. I’m sure everyone in the country will see this massive increase manifest in their pay and/or services. 100%. Defintely. This is absolutely not completely meaningless news for the masses.
:-)
cheaper borrowing for Ireland so more money to spend /invest/squander ?
Hmmm. 26% increase. I don’t see it on main street. Anyone else? Partially due to ‘assets relocating’? Are they stock market and property purchases by millionaires/ billionaires who’ve borrowed fortunes and are buying up everything they can? Or is it real world economic recovery purchases? Because I’m really not seeing it if it’s actually real.
“I don’t see it on main street.”
And you won’t. But, hey, a few heads that own a company that sells fupping airplanes made a hefty profit last year so cashiers in Aldi should rejoice.
you’re such as miserable lady garden . day in day out
At least I’m not a tedious dullard. I thought you appointed yourself BS spokesman to tell me “we” ‘loved’ me anyway? All change on that front?
dude, you’re the dullest person here
Translation; ‘I know you are but what am I?’ Thanks for immediately proving me right you absolute bore.
“Largely driven by aircraft purchases”
So a jump in aircraft leasing, which is only a handful of companies with very few beneficiaries is the main reason for the jump? That means nothing in the long term.
Tell that to the homeless families and the children on the poverty line, even though both their parents work.
Would you prefer if we didn’t have successful aircraft leasing companies?
https://www.youtube.com/watch?v=mQR0bXO_yI8
*gets house valued*
Basically it’s a few companies transferring their balance sheets over to ireland. Nice tax loopholes to avail of here.
“Ireland reported a surprise fall in GDP in the first quarter, but with enormous revisions showing that the economy grew by 26.3 per cent last year, against a previous reading of 7.8 per cent…The first-quarter decline of 2.1 per cent contrasted with economists’ expectations of a 1.5 per cent rise. GDP grew 2.3 per cent on an annual basis, compared to expectations of 7.2 per cent.”
https://next.ft.com/content/5efb5c22-93d9-3422-bf68-2ff6b54db941
So our economy is performing quite badly but an airplane shop made some profit last year so we’re all actually grand.
Remember when the GDP figures were adjusted to include the wages of sin?
http://www.irishexaminer.com/business/ireland-to-include-prostitution-drugs-and-smuggled-cigarettes-in-gdp-293389.html
Anyone ever thought maybe this is why corporation tax receipts are running so far ahead of forecast over the last year? There is some tangible benefit from all this redomiciling into the economy…
NO THIS IS TERRIBLE NEWS. I DON’T KNOW WHY BUT I’M VERY ANGRY… lol
But yeah – corporation tax receipts and our debt/GDP ratio are the main benefits here.
Thought is verboten on BS ….you you Goldman Sachs screeching Queen Tart of the Elites
Deck the halls with lots of holly and lovely lolly and all types of ribbons and ballons, it be party time, christmas every day of the year.
The celtic tiger or rather lion be back.
If this is to be believed then Ireland, this little island, has an actual larger GDP, than states, Germany and Japan all put together.
How did that happen.
Ping, take the books out i think they are ready, fully cooked.
So it’s a bunch of one off purchases that’s given us this 26% boost. So that means there’s gonna be a massive contraction in the GDP figures next quarter when we go back to normal?
Crazy idea could they not remove the figures which distort the % and publish that figure ?
not as simple as that. We do earn taxes on some of these figures. We do gain employment. You cant simply remove the figures. Also, other countries no doubt have some sort of distortions on their figures, even if not as large as on ours. So difficult to compare if you start subjectively adjusting.