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The economy contracted in 2023​


The country's GDP decreased by 3.2% last year, according to new data from the Central Statistics Office, primarily due to a decline in the industries sector dominated by multinational corporations.

This was a decrease from growth of 9.4% in 2022 and compared to an early prediction of a dip of 0.7%.

The more accurate measure of the domestic economy, Modified Domestic Demand, expanded by 0.5% in 2023; nevertheless, this was far less than the 2.2% growth predicted by the Department of Finance and followed a persistent decline in investment in the last quarter of 2023.

According to the CSO, last year's effects of the continuing world events and the slowing inflation rate differed throughout the various economic sectors.

It stated that although the more globally integrated economic sectors shrank for the first time since 2013, with the industry contracting by 11%, the information and communication sector grew by 8%.

Within the sectors catering to the domestic market, the Financial & Insurance sector experienced a 7.5% growth in economic activity during the year. Meanwhile, the Distribution, Transport, Hotels & Restaurants, and Agriculture, Forestry & Fishing sectors saw increases of 4.5% and 15.4%, respectively.

Since Ireland's sizable multinational industry frequently distorts GDP, officials prefer to use MDD as a proxy for economic strength. A post-pandemic boost in investment caused MDD to grow by 9.5% in 2022.