Economy in record third quarter growth of 7.2%

The country’s Gross Domestic Product went up by 7.2% in real terms in the third quarter of this year.

According to provisional figures published by the National Statistics Office the GDP amounted to €2.8 billion at the end of the quarter, an increase of €249.6 million on the same period a year earlier.

During the third quarter of 2017 consumption expenditure increased by 7.6%, mainly due to an increase of 18.1% in government final consumption and an increase of 4.4 per cent in household expenditure.

Gross fixed capital formation which measures investment, increased by 1.5% in nominal prices but decreased by 2.4% in real terms. Exports of goods and services increased by 3% in nominal terms and decreased by 1.3%in real terms, while imports of goods and services remained broadly stable in nominal terms and decreased by 4.4%in real terms.

Economic growth contributed to a €60.9 million increase in compensation of employees, a €115.3 million increase in gross operating surplus of enterprises, and a €73.5 million increase in net taxation on production and imports.

In a statement, the government said the 7.2% increase was a national record for the third quarter of a year, and higher than the 5.6% growth predicted by the European Commission.

 It said the country's strong economic performance could be attributed to wages rising by 6.5% and leading to a 4.5% increase in private consumption. The business environment also saw business profits rise by 10%, with more than €1.6 billion invested in the third quarter of the year.