Brian Hayes (Dublin South West, Fine Gael)
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Question 16: To ask the Minister for Finance his views on the falling GDP in the second quarter; the reason such a significant drop occurred; in view of the drop, if he will estimate the annual growth rate in GDP for 2010; and if he will make a statement on the matter. [33931/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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National accounts data published last week by the Central Statistics Office show that GDP declined by 1.2 per cent between the first and second quarters of this year. I would point out that this follows an increase of 2.2 per cent in the first quarter - in other words, taken together the data for the first two quarters suggest that the level of GDP has stabilised.

The quarterly figure for GNP was a decline of 0.3 per cent between the first and second quarters, pointing towards stabilisation in this measure of economic activity. In annual terms, GDP fell by 1.8 per cent in the second quarter. Personal consumption and investment moved in line with expectations while exports continued to increase significantly, which is to be welcomed. However, a somewhat unexpected surge in imports reduced the overall level of GDP in the second quarter. As I have already indicated, my Department is assessing all relevant information and will publish revised macro-economic forecasts in the coming weeks.