Stockbroker Davy has revised upwards its outlook for economic growth to at least 15% of Gross Domestic Product for the full year.
It warned however that the recovery in domestic activity remained very gradual, but it anticipates that the rebound from the third lockdown restrictions will become apparent in the current three month period.
The upwards revision came on the back of yesterday's data from the Central Statistics Office showing GDP growth of 6.3% in the three months to the end of June.
That followed growth of over 8% in the first quarter to the end of March.
"This is well ahead of our expectations," Conall MacCoille, chief economist with Davy said.
"Once again, the volatile multinational sector was at play, expanding by 3.7% in Q2 2021 after the enormous 14.1% growth in Q1," he cautioned.
"This is being felt in buoyant exports, particularly in the computer services and pharmaceuticals/med-tech sector."
He described the data for the indigenous economy as being 'more sedate.'
Output in the indigenous sector rebounded by a more modest 2% in the second three months of the year after the third lockdown had depressed activity earlier in the year.
That left activity almost 6.5% below pre-pandemic levels.
"Consumer spending, which fell 5.7% in Q1, rose 12.6% in Q2 to just 3.4% below pre-pandemic levels," Mr MacCoille pointed out.
Construction output bounced back sharply but remained below pre-pandemic levels.
"Our forecast for 10% GDP growth in 2021 will have to be revised upwards towards 15% or above, as will the Central Bank (8.3%) and Department of Finance (8.8%) projections," Conall MacCoille said.
