Irish GDP Surges in Q1 2025, GNP Contracts Sharply

Ireland’s economy grew by 7.4% quarter-on-quarter in Q1 2025, falling short of the second estimate of 9.7%, but accelerating sharply from a revised 4.5% expansion in the previous quarter.

Despite the downward revision, it marked the fastest pace of growth since Q1 2021, driven largely by a surge in exports as multinational firms front-loaded shipments ahead of new US tariffs imposed by President Donald Trump.

The expansion was concentrated in multinational-dominated sectors, with output from foreign-based companies rising 13.6%.

The globalized industry sector jumped 16.5%, while growth in information and communication was modest at 0.5%.

In contrast, the domestic economy grew by a more moderate 2.0%, supported by a 49.1% spike in capital investment.

Personal consumption edged up just 0.3%, and government spending fell by 1.3%.

Meanwhile, GNP declined by 7.2%, a steeper drop than the earlier estimate of 2.1%.