GDP decreases 1% in Q2 as multinationals falter
The Irish economy contracted in gross domestic product terms in the second quarter, according to the Central Statistics Office (CSO).
Early estimates show that GDP decreased by one per cent from the first quarter due to a decline in the multinational-dominated industry in three months from April to June.
It is the first such quarterly decline in GDP since the end of 2023 and follows significant expansions in each of the past three quarters (+4.6 per cent in Q3 2024, +4.5 per cent in Q4 2024 and +7.4 per cent in Q1) as exporting multinationals prepared for the White House to implement tariffs.
When compared with the same quarter in 2024, GDP rose by 12.5 per cent, down from 20 per cent year-on-year in Q1. GDP represents the total value added in the production of goods and services in the country.
"In today’s release, GDP is estimated to have contracted by one per cent in April, May and June (Q2) 2025 in volume terms when compared with Q1 2025," said Enda Behan, statistician in the national accounts integration division of the CSO.
"This was driven by a decrease in the multinational dominated sector of Industry in Q2 2025. GDP is estimated to have risen by 12.5 per cent when compared with Q2 2024, reflecting continued strong multinational growth in 2025.
GDP fell by 1% in the second quarter.
"These preliminary estimates are based on forecasting and data sources that are limited in scope when compared with those used for compiling GDP in the CSO’s Quarterly National Accounts.
"The data sources include information from the CSO Large Cases Unit, Retail Sales, Administrative Payroll Data and other indicators of activity."
(Pic: Getty Images)
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