Ireland officially out of recession in Q2

FXstreet.com (Barcelona) - According to the GDP data released today by the Central Statistics Office in Dublin, Ireland's economy expanded by 0.4% in the second quarter of 2013, marking thus the end of the nine-month recession in the country. The reading nevertheless came in below expectations of 0.8% growth.

A 4.3% rise in exports, and a 0.7% increase in consumer spending contributed to the recovery in the second quarter of the year. Still, the domestic economy didn't fare that well, registering a 0.4% contraction.

The end of recession is good news for Ireland which is preparing its exit from the rescue program. It would be the first of the EU countries currently under financial assistance to leave it.

Anthony Baert from ING believes that “despite the positive short-term outlook, the recovery should remain subdued as both fiscal consolidation and private deleveraging are likely to continue weighing on domestic demand.”

“At the same time, these two factors will not only determine Irish growth prospects but play also a role in whether or not Ireland can indeed smoothly exit its bail-out programme at the end of this year. In our view, Ireland is on the right track to leave its programme but the jury is still out.”

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