Irish 2015 GDP growth upped to 26 pct on huge asset reclassification

(Corrects day in first paragraph to Tuesday)

DUBLIN, July 12 (Reuters) - Ireland (Other OTC: IRLD - news) 's economy grew by 26.3 percent last year and not the 7.8 percent initially estimated after the level of capital assets included on the state's balance sheet was revised dramatically, the Central Statistics Office said on Tuesday.

An increase in the number of aircraft imported into Ireland for international leasing and the reclassifications of entire balance sheets, for example through corporate inversions into Ireland, were among the main reasons, the CSO said.

Such "inversions" have increased in recent years, in which companies have sought to slash their tax bills by redomiciling overseas, with their core operations and management usually remaining in the original jurisdiction even as they claim a new tax home.

"What happens here is that an entire balance sheet of a company relocating to Ireland, from somewhere else, is included in our capital stocks or our international investment position," said Michael Connolly, a senior statistician at the CSO.

"The very dramatic increase has increased the capacity for production in the economy and impacts the accounts for 2015 in the increase of exports and imports... Employment has not changed greatly as a result."

(Reporting by Padraic Halpin; editing by John Stonestreet)