Ireland’s GDP Growth Slows to 5.5% in Q3

Ireland’s seasonally adjusted GDP grew by 5.5% in the third quarter of 2026, slowing from a 10.2% surge in the previous quarter, according to preliminary estimates. Growth was driven primarily by gains in the multinational dominated sectors of industry, and information and communication. On a year-over-year basis, Ireland’s GDP increased by 3.9% in Q3, rebounding from a 0.4% contraction in the previous quarter.

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.

Ireland’s economy expanded 3.9% quarter-on-quarter in the second quarter of 2026, rebounding from a 7.0% contraction in the previous quarter and ending two consecutive quarters of decline, according to preliminary estimates. This marked the strongest growth since Q1 2025, driven mainly by an increase in the multinational-dominated information and communication sector. On an annual basis, GDP fell 1.6% in Q2, easing from a 13% decline in the previous quarter and marking the third consecutive quarter of contraction after five straight quarters of growth.