Ireland Economy Expands at Fastest Pace Since 2021

2026-09-04 10:46 By Larissa Caser 1 min. read

Ireland's economy expanded by 10.2% in the second quarter of 2026 compared to the prior quarter, following an upwardly revised 7.8% contraction in the previous quarter and exceeding preliminary estimates of a 3.9% rise.

This marks the fastest pace of growth since the first quarter of 2021, driven by growth in the multinational-dominated sectors, which expanded by 11.2%.

The globalized industry sector expanded by 22.1%, while the information and communication sector rose 2.3%.

Meanwhile, the domestic sectors expanded at a slower pace of 0.7%, while personal spending rose 1%.

The Modified Domestic Demand (MDD), a broad measure of underlying domestic activity that covers personal, government, and investment spending, contracted by 0.8%, driven by a decline in investment.

On an annual basis, the economy contracted 0.4% following a 13.2% drop in the prior quarter, marking the third consecutive quarter of a contraction.



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Ireland Economy Expands at Fastest Pace Since 2021
Ireland's economy expanded by 10.2% in the second quarter of 2026 compared to the prior quarter, following an upwardly revised 7.8% contraction in the previous quarter and exceeding preliminary estimates of a 3.9% rise. This marks the fastest pace of growth since the first quarter of 2021, driven by growth in the multinational-dominated sectors, which expanded by 11.2%. The globalized industry sector expanded by 22.1%, while the information and communication sector rose 2.3%. Meanwhile, the domestic sectors expanded at a slower pace of 0.7%, while personal spending rose 1%. The Modified Domestic Demand (MDD), a broad measure of underlying domestic activity that covers personal, government, and investment spending, contracted by 0.8%, driven by a decline in investment. On an annual basis, the economy contracted 0.4% following a 13.2% drop in the prior quarter, marking the third consecutive quarter of a contraction.
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