The new release is here.
- 2012 nominal GDP and GNP ahead of projections used in December’s budget (163,595/133,403 versus 163,150/130,850)
- 2012 real growth rates were 0.9% for GDP and a remarkable 3.4% for GNP
- Caveat – GNP is not straightforward to interpret. A quirk of national accounting is that the overseas profits of a firm that is headquartered in Ireland are included even if all of the shareholders are foreign. In relation to portfolio shareholders (ie holding less than 10 percent stake), GNP is then reduced when dividend payments are made to shareholders. So, GNP can be temporarily boosted if such a firm chooses to retain earnings rather than pass along earnings to shareholders through dividend payments. This may be empirically relevant for Ireland in view of the pattern of some global firms opting to establish headquarters in Ireland.