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Ireland Exits Recession With 0.4% Second-Quarter Expansion

Ireland’s economy expanded in the second quarter, exiting its second recession since 2008 when a decade-long real-estate boom imploded.

Gross domestic product rose 0.4 percent from the previous three months, when it fell 0.6 percent, the Central Statistics Office said in a report published in Dublin today. Economists had estimated a 1 percent expansion, according to the median of nine estimates in a Bloomberg News survey. GDP fell 1.2 percent from a year earlier.

Ireland is seeking this year to become the first nation to exit a bailout since the euro-region crisis began. The finance ministry said on Sept. 10 there may be “some downside potential” to its forecast for 1.3 percent economic growth for the full year.

Improving indicators, including payrolls, production, retail sales and house prices “point to a stronger second-half outturn for the Irish economy,” Philip O’Sullivan, an economist at Investec Plc in Dublin, said in a note on Sept. 17.

Growth in the second quarter was helped by a 4.3 percent increase in exports and a 0.7 percent gain in consumer spending. Imports rose 0.7 percent, while government spending fell 1.3 percent.

To contact the reporter on this story: Joe Brennan at jbrennan29@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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