Irish GDP Contracted 0.6% in Q4

Ireland’s GDP fell by 3.8% quarter-on-quarter in the final quarter of 2025, worse than the initial estimate of a 0.6% drop, after showing no growth in the previous period. This marked the sharpest contraction since the second quarter of 2020, weighed down by a 2.6% drop in the multinational-dominated sector, led by industry excluding construction, which fell 3.6%. On the expenditure side, growth in household consumption picked up (0.9% vs 0.4% in Q3) but slowed in government spending (0.3% vs 1.5%). Fixed investments declined by 4.6%, reversing a 13.4% increase in the third quarter. In trade, exports dropped (-3.4% vs 2.4%) more than imports (-1.3% vs 10.4%), resulting in a 9.0% fall in net exports. On a yearly basis, GDP rose by 2.2%, slowing sharply from an upwardly revised 11.2% increase in the prior quarter and marking the weakest pace of growth since a contraction in the second quarter of 2024. In 2025, Ireland’s economy expanded by 12.3%, accelerating from a 2.6% growth in 2024.

Ireland’s gross domestic product fell by 0.6% quarter-on-quarter in the three months to December 2025, following a 0.3% decline in the previous quarter, according to preliminary estimates. This marks the second consecutive period of economic contraction, largely driven by a downturn in the multinational-dominated industrial sector. On an annual basis, the economy expanded by 3.7%, a significant slowdown from the 10.8% growth recorded in the previous quarter, and the weakest annual increase since the economic contraction in the second quarter of 2024.

Ireland’s gross domestic product contracted by 0.3% quarter-on-quarter in the three months to September 2025, more than the initial estimate of 0.1%, following a revised 0.3% rise in the previous period. This marked the first economic downturn since the fourth quarter of 2023. The multinational-dominated sector grew more modestly by 1.1%, while domestic sectors fell by 0.1%. Within the domestic economy, the globalized industry sector shrank by 0.7%. On the expenditure side, personal spending inched up 0.1%, government expenditure rose 2.1%, and gross fixed capital formation climbed 12.5%. However, on the trade front, exports increased only 2.1%, compared to the 10.4% rise in imports. As a result, net exports decreased 14.6%. Meanwhile, GNP increased 0.8%, slowing sharply from a 15.3% growth in the prior quarter.