DUBLIN (Reuters) - Ireland’s volatile gross domestic product (GDP) is likely to beat official forecasts for growth of 5.1 percent this year after expanding sharply in the third quarter, Finance Minister Paschal Donohoe said on Friday.
“On the basis of today’s data, the outturn for this year is likely to be above the Department’s projections. Having said that, it must be acknowledged that a key factor behind the stronger-than-expected growth was exports associated with contract manufacturing which has little, if any, impact on domestic activity,” Donohoe said in a statement.
“Notwithstanding the well-known limitations with GDP and GNP, it is clear that the recovery continues to outperform expectations and while this is to be welcomed, it creates its own challenges ... It is essential that budgetary policy does not contribute to overheating.”
Reporting by Padraic Halpin; Editing by Catherine Evans