Market comment - CSO data confirm multinationals drove positive GDP growth

Davy Research
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Yesterday’s (January 12th) CSO data confirmed Ireland’s positive 3.8% GDP growth in the first three quarters of 2020 was driven by a 20% expansion in multinational sector output but 10% contraction in indigenous sectors. This ‘two-speed’ Irish economy should not be dismissed as a statistical mirage as the buoyant multinational sector is supporting employment and corporation taxes. However, the data also suggest that COVID-19 restrictions had a sharper negative impact on the indigenous sector than in most European countries.