The Irish economy contracted by a record 6.1pc in the three months of April, May and June despite a massive increase in government spending to offset the Covid pandemic.
The second quarterly contraction in a row formally confirms that the economy here is in recession, but the numbers that were published yesterday were better than many experts had feared.
"Although Ireland experienced a large contraction in output in Q2, the fall was much less than that seen in most developed economies thanks to the ongoing resilience of the international sector," according to Dermot O'Leary, chief economist at Goodbody Stockbrokers.
He said the Irish economy is already seeing a K-shaped trajectory, a term coined to describe a sharp fall followed by a split in performance as some sectors recover rapidly whole others continue to decline.
While the lockdown hit sectors like construction, retail and leisure this was offset by continued strong growth in the manufacturing sector, which is dominated by multinational firms including in pharmaceuticals, which bucked the domestic and global trend to clock up 17pc year-on-year growth in Q2.
By historic comparisons the decline in the overall size of the economy between April 1 and the end of June was huge, but it was a fraction of the 20pc decline in the UK in the same period.
However, when the activities of multinationals are stripped out, the Irish domestic data shows the economic collapse here was of a similar scale to that seen in Britain.
Official Central Statistics Office (CSO) Quarterly National Accounts for the second quarter of 2020, which covers the most restrictive period of the Irish lockdown, show personal consumption, a key measure of domestic economic activity, decreased by 19.6pc.
That took the value of activity in the domestic economy back to 2005 levels. April itself saw domestic economic activity plunge to an all time low.
Gross National Product (GNP) - a measure of economic activity that excludes the profits of multinationals - contracted by 7.4pc in the quarter.
Domestic spending collapsed even as the Government dramatically increased its spending by 7.5pc in the period, a figure that includes higher health outgoings, but not the social welfare bill which shot up as the Government rolled out household supports including the pandemic unemployment payment and the temporary wage subsidy scheme.
As a result of the rise in government spending, the National Treasury Management Agency (NTMA) will this week look to borrow another €1.5bn from the bond markets, adding to the national debt. This will take total borrowing this year to €21.5bn, approaching the upper end of a range the NTMA has said it is looking to raise this year.
The NTMA had said it was looking to borrow between €20bn and €24bn this year.
The agency will hold a bond auction on Thursday where it will issue debt by adding to an outstanding 'Green Bond' that is due in 2031 and that commanded a 1.35pc interest rate at issue, as well as a bond due in 2050 that carried a 1.5pc interest rate.