Irish recovery from “austerity” update, not exactly the Keynesian story

The economy expanded at a faster rate than expected in the second quarter of the year, putting in its strongest quarterly growth performance since the recession began, according to new data published today.

The seasonally adjusted figures estimated that gross domestic product – the widest measure of economic activity –  rose by 1.6 per cent between the first and second quarters of 2011. Gross national product, which excludes the profits of multinational firms, increased by 1.1 per cent compared with the first quarter of the year.

Domestic demand, which excludes exports and imports, expanded too, growing by 0.8 per cent.

It is the first time since the recession began that GDP, GNP and domestic demand all grew in the same quarter.

And all that in some very bad times for the U.S. and Europe, two main buyers of Irish goods and services.  The link is here, sadly this progress probably will be swept away by the forthcoming European implosion, we will see.

Addendum: Megan McArdle hits the nail on the head.


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