05.03.202611:40:17UTC+00Ireland GDP Shrinks at Fastest Pace Since 2020

Ireland’s GDP contracted by 3.8% quarter-on-quarter in the final quarter of 2025, a much steeper decline than the initially estimated 0.6% drop, following flat growth in the previous quarter. This was the sharpest contraction since the second quarter of 2020, driven by a 2.6% decline in the multinational-dominated sector, led by a 3.6% fall in industry excluding construction.

On the expenditure side, household consumption growth strengthened to 0.9% from 0.4% in Q3, while government spending growth slowed to 0.3% from 1.5%. Fixed investment fell by 4.6%, reversing a strong 13.4% increase in the third quarter.

In external trade, exports declined by 3.4% after rising 2.4% in Q3, while imports fell 1.3% following a 10.4% surge. As a result, net exports dropped by 9.0%.

On an annual basis, GDP grew by 2.2%, a sharp slowdown from an upwardly revised 11.2% increase in the previous quarter, and the weakest growth rate since the contraction recorded in the second quarter of 2024. For the full year 2025, Ireland’s economy expanded by 12.3%, accelerating from 2.6% growth in 2024.