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Irish Post
05-06-2025
- Business
- Irish Post
Irish economy grew in first quarter of year due to exporting increase ahead of US tariffs
IRELAND'S GDP increased by 9.7 per cent in the first quarter of this year new figures show. The Central Statistics Office published the Quarterly National Accounts for the first quarter of 2025 today. They show the rise in gross domestic product (GDP) which was driven by a substantial increase in goods exports as firms' rushed to export to the US ahead of the proposed higher tariff's due to be implemented by President Trump on EU goods. Finance Minister Pascal Donohoe 'I note the substantial quarterly increase in Gross Domestic Product (GDP) of 9.7 per cent in the first quarter of this year,' Finance Minister Pascal Donohoe said today. 'This was driven by a significant increase in the export of goods, and reflects, in large part, the 'front-loading' of exports in anticipation of the imposition of tariffs by the US administration,' he explained. 'This is also a feature in other countries, though the scale is much larger in Ireland. 'My officials assess this as likely to be temporary – with exports and GDP likely to moderate over the course of this year.' Elsewhere the figures show the nation's Modified Domestic Demand – which is deemed a more appropriate indicator of activity in the domestic economy – grew by 0.8 per cent relative to the previous quarter and by one per cent on an annual basis. Consumer spending grew at a pace of 2.5 per cent in the first quarter according to the report. 'Today's results highlight, once again, that GDP is not an accurate reflection of economic activity happening 'on the ground',' Minister Donohoe said. 'This is why alternative indicators, such as Modified Domestic Demand, are so important in an Irish context. 'On this basis, the domestic economy grew by 0.8 per cent in the first quarter. 'This is a more accurate reflection of developments in the domestic economy and is consistent with the strength of our labour market – with a record 2.8 million people in employment at the beginning of the year.' Mr Donohoe claims the figures confirm the 'relatively strong position of the domestic economy at the start of this year'. 'Looking ahead, however, the economic outlook has become increasingly challenging,' he added. 'Indeed, the significant increase in uncertainty is likely weighing on growth,' Mr Donohoe suggested. 'In this more challenging global environment, we must focus on policy areas where we can exert influence. "In particular, continuing to boost our competitiveness will be key to ensuring that Ireland remains an attractive place to live, work and invest – not just today, but over the long term.' See More: Economy, Exporting, GDP, Ireland, Tariffs, US
Reuters
19-05-2025
- Business
- Reuters
EUROPE So, China should consume more and the US less?
A look at the day ahead in European and global markets from Wayne Cole It's been a down day so far in Asia as a miss on China retail sales underlined how far the country would have to travel to shift away from an export-driven economy to one driven by domestic demand. Clearly consumers there aren't feeling the urge to buy, and it's not obvious that Beijing wants that to change. So, President Donald Trump is telling Americans they have to live with fewer dolls and pencils, while pushing trade policies that indirectly pressure Chinese consumers to buy more. U.S. Treasury Secretary Bessent was out Sunday chiding would-be trade partners to offer "good faith" deals or face getting a tariff rate sent by letter. He also implied the U.S. only has time to deal with the top 18 trade partners, and the rest could swing in the breeze. That still leaves the effective tariff for U.S. imports around 13%, the highest since the 1930s and equivalent to a tax rise worth 1.2% of GDP, which Trump is asking Walmart to eat in margins rather than pass on to voting customers. It'll be interesting to see what Target, Lowe's and Home Depot have to say this week about that idea, which smacks of the sort of state price-setting in a Soviet-style command-control economy. Trump needs the revenue from tariffs, in part, to fund his tax cut package, which has finally got through a House of Representatives committee and could be voted on later this week. This sprawling bill is estimated to add between $3 trillion and $5 trillion to the national debt over a decade, and was one reason Moody's last week joined its peers in downgrading the U.S. Ratings really haven't mattered much since the financial crisis, when the subprime debacle tarred the reputation of some agencies and funds abandoned triple-A mandates. Yet the news seems to have struck a nerve with foreign investors already dismayed by the erratic nature of U.S. policy-making, and has Wall Street futures down 1% or more today. Ten-year yields are up around 5 basis points and the dollar is down, albeit modestly. For their part, euro bulls will be relieved by the surprise victory of pro-EU candidate in the Romanian elections, along with wins by centrist parties in Poland and Portugal. Key developments that could influence markets on Monday: - EU final CPI data for April - Fed speakers include Bank of Atlanta President Raphael Bostic, Vice Chair Philip Jefferson, Bank of New York President John Williams, Bank of Dallas President Lorie Logan, Bank of Minneapolis President Neel Kashkari
