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Growth forecast has 'anomalies'

THIS year's growth forecast is being significantly boosted by accounting anomalies from certain companies, the State's budgetary watchdog has said.

The Department of Finance has projected growth this year of 4.7pc, but the Fiscal Advisory Council has said gross domestic product in the first half of the year was inflated by so-called contract manufacturing involving possibly just a handful of companies.

This is where an Irish-resident firm contracts a manufacturer abroad to produce a good for supply to a client overseas. The sale of the good is recorded as a goods export, while the contracted production is considered a service import.

The Council said this would have boosted first-half GDP by about 2.5 percentage points.