The Republic of Ireland's economy has enjoyed a boost in growth during the second quarter of the year, according to new figures.
Official data has revealed the economy rose by 1.5 per cent in Q2 of 2014 and grew 7.7 per cent on the April-to-June period compared to 2013. The announcement has prompted the government to revise growth forecasts and it has maintained that there will be no new austerity measures introduced in the near future.
A survey by the Reuters news agency highlighted that the growth in the economy was slightly higher than economists had expected. The research showed that 0.5 per cent was the predicted level of growth but a 1.5 per cent increase shows further signs that Ireland is recovering from the tough economic conditions experienced during the recession.
Ireland, along with Greece, Spain and Portugal, suffered substantially during the 2008 financial crisis. The Emerald Isle experienced soaring levels of unemployment while its property bubble burst, leaving many companies on the brink of liquidation or having to restructure just to survive. However, the growth of the nation's economy highlights that it could be turning a corner.
Finance minister Michael Noonan described Ireland's economy as being in "a catch-up phase… after recession". He told reporters that the 7.7 per cent growth was the best performance the nation has recorded since the early 2000s and that it has outstripped the rest of the eurozone by a considerable distance.
Commenting on Ireland's growing economy, Austin Hughes, chief economist at KBC Bank Ireland, said: "At face value, the numbers suggest that the boom is back. It shows a clearly improving economy. It's very encouraging to see the improvement in consumption, in construction.
"So a domestic recovery is taking hold, if a lot less intense that the headline number would suggest."
Find up to date information on spread betting strategies at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.