This suggests that the underlying trend in economic activity remains positive, partly because the Government was able to implement a fiscal stimulus by drawing on the savings that were accumulated when revenues were buoyant.
In relation to the financial system, the large size of the international financial services sector in Ireland means that the underlying financial positions of Irishdomiciled firms and households are not visible in the headline data, which are dominated by matched inward and outward flows by international financial intermediaries. These measurement challenges have the potential to distort risk assessments and policy analysis.