Ireland’s gross domestic product (GDP) grew 13.5% to €428.3 billion in 2021, driven by a strong upturn in its multinational dominated sectors, according to national accounts published by the country’s Central Statistics Office (CSO).
There was growth of 16.6% in exports of goods and services during the year.
The multinational dominated sectors grew 21.9% in 2021 with all other sectors increasing 5%.
Ireland’s balance of payments current account recorded a surplus of €58.8 billion in transactions with the rest of the world in 2021, driven by improvements in the merchandise and services balances.
Personal spending reached €105.2 billion in 2021, up from the 2020 result of €99.5 billion, but 5.3% lower than the €111.1 billion pre-pandemic level of spending in 2019.
Assistant Director General with responsibility for Economic Statistics, Jennifer Banim, said in a statement: “Several sectors focused on the domestic market experienced higher levels of economic activity in 2021, with the Distribution, Transport, Hotels & Restaurants sector growing by 6.2% and Arts & Entertainment increasing by 12.6%.
“However, the Construction sector contracted by 4.7% in the year and Agriculture, Forestry & Fishing decreased by 1.4%.
“Growth continued in the more globalised sectors of the economy with Industry increasing by 24.0% and the Information & Communication sector growing by 14.1% in the year.
“Overall, multinational dominated sector growth was 21.9% and in 2021, these sectors accounted for 56.2% of total value added in the economy, compared with a 52.5% share in 2020 and a 45.1% share in 2019.
“Looking at expenditure in the economy, Government spending on goods and services increased by 5.3% in 2021, while personal spending on goods and services (the PCE indicator) increased by 5.7% in the year.
“Looking at PCE constant price levels over the past three years, personal spending reached €105.2 billion in 2021, a recovery compared to the 2020 result of €99.5 billion, but 5.3% lower than the €111.1 billion pre-pandemic level of spending in 2019.
“PCE accounted for almost 25% of GDP in 2021, down from 26.4% of GDP in 2020 and 31.1% in 2019.
“Overall, GDP is estimated to have increased by 13.5% in 2021, driven largely by growth of 16.6% in Exports of Goods & Services in the year.
“GNP – a measure of economic activity that excludes the profits of multinationals – increased by 11.5% in 2021.”
On the impact of globalisation activities in 2021, Banim said: “Compared to 2020, investment in Intellectual Property Products (IPP) decreased by 56.1% in 2021, driving a decrease of 16.6% in Final Domestic Demand in the year.
“Modified Domestic Demand (MDD), a broad measure of underlying domestic demand that excludes IPP and aircraft related globalisation effects, increased by 6.5% in 2021.
“In International Accounts results, the Current Account of the Balance of Payments recorded a surplus of €58.8 billion in flows with the rest of the world in 2021, driven by improvements in the merchandise and services balances.
“The improvement of €58.8 billion in the Services balance between 2020 and 2021 reflects the lower levels of IPP imports in 2021.
“Multinational profit net outflows were €90.7 billion in the year, an increase of €21.0 billion on 2020 levels.
“Today’s International Accounts publication includes a table of Current Account transactions with the UK.
“The results show a surplus of €17.5 billion for Trade in Goods & Services with the UK in 2021, an increase of €6.2 billion on the 2020 trade balance.
“The trade surplus was offset by a deficit of €10.6 billion for net income flows, giving an overall Current Account surplus of €6.9 billion with the UK in 2021.”