The Irish economy contracted more then expected in the first quarter, after returning to growth in the preceding quarter, preliminary data released by the Central Statistical Office showed Thursday.

The gross domestic product (GDP) decreased a seasonally adjusted 1.1 percent sequentially in the first quarter, after expanding by 0.7 percent in the fourth quarter, which was revised from a 0.2 percent decline. Economists were looking for a 0.4 percent contraction in the first quarter.

Agriculture, forestry and fishing and other services were the only sectors to record increases during the period. However, the combined decreases in industry, distribution, transport, software and communications and public administration and defense more than offset these increases.

Compared to the first quarter of 2011, the GDP grew 1.2 percent during the three-month period, notably slower than the the fourth quarter's 2.8 percent gain.

At the same time, the gross national product (GNP) decreased 1.3 percent sequentially in the first quarter, after falling 0.9 percent in the previous quarter. Year-on-year, the GNP edged up 0.2 percent during the quarter.

Separately, the agency said Ireland's current account turned to a deficit of EUR1.05 billion in the first quarter from a surplus of EUR1.74 billion in the fourth quarter. In the first quarter of 2011, the balance was a deficit of EUR1.92 billion. The current account slipped into the negative territory as a EUR8.28 billion surplus in the merchandise account was offset by an invisibles deficit of EUR9.33 billion, data showed.

RTTNews