Ireland’s GDP Grows 3.2% in Q1 2025, Driven by Multinational Sectors
Economic growth shows a strong rebound, but volatility in GDP figures underscores the influence of multinational activity.
Preliminary figures from the Central Statistics Office (CSO) reveal that Ireland’s Gross Domestic Product (GDP) rose by 3.2% in the first three months of 2025 compared to the last quarter of 2024. The increase, which reflects the economic contribution of multinational corporations, marks a significant uptick after a period of decline throughout 2023 and most of 2024.
Multinationals Fuel Growth
The CSO attributed the growth to a surge in multinational-dominated sectors during Q1 2025, with domestic sectors showing a more modest increase. When compared to the same period in 2024, the first quarter of 2025 exhibited an impressive year-on-year growth of 13.3%. This sharp rise appears amplified due to the downturn in GDP figures over the previous two years, largely influenced by fluctuations in multinational activity.
Volatility and Future Revisions
Ireland’s quarterly GDP figures are notoriously volatile, often swayed by the performance of multinational corporations operating in the country. The CSO cautioned that the Q1 2025 results are preliminary and subject to revision, with updated figures expected in June. The volatility underscores the challenges of relying on GDP as a stable measure of Ireland’s economic health, particularly given the outsized role of global firms in the economy.
