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GDP shows first quarterly increase since Q3 2008

Irish Gross Domestic Product (GDP) increased by 2.7% in Q1 2010, compared to the GDP for Q4 2009, the Central Statistics Office revealed today. This was the first increase in GDP compared to the prior year quarter since quarter 4 2007. Gross Domestic Product is used as a calculation of the total income produced in the country as a measure of national wealth.

Gross National Product (GNP) adjusts GDP by excluding profits that are transferred abroad by multi-national corporations. Simply put, while GDP measures the total income flow in the economy during a period, it does not reflect the final wealth during the period as multi-national profits are not all spent in the country. Actual GNP fell by 0.50% compared to Q4 2009.

The results may show that Ireland is on the road to recovery. However, for Irish consumers the recovery will only be when the jobs market recovers, which in turn is dependent on the increase in GDP to stimulate the need for labour. The results are a sign of some optimism but there is a long way to go yet.