David McNamara: Multinational investment a roaring success but Ireland needs stronger domestic performance

Ireland's economy is increasingly reliant on a small number of US companies

The big picture is that the Irish economy has become increasingly reliant on a small number of large multinationals, not only for GDP growth, but to underpin our tax base, says David McNamara.

Mon, 06 Jul, 2026 - 10:34

David McNamara: British economy is stuck in stagnation

David McNamara is the Group Chief Economist at AIB responsible for leading the bank's macroeconomic analysis and provide insights for both national and international stakeholders.

Last week’s Irish national accounts data for 2025 reveals a similar picture to provisional GDP estimates: another robust year of growth for the Irish economy. The data also highlight the increasingly lopsided nature of the Irish economy, with growth driven predominately by US multinationals.

While GDP growth wasn’t quite as strong as the initial estimate of +12.3% for 2025, the 8% gain was still exceptional in a European context. Modified Domestic Demand (MDD) and Gross National Income (GNI*) both grew at 4.7%, reflecting very strong physical investment trends in the multinational sector, alongside solid consumer and government spending. On the output side, the breakdown shows multinational GVA (Gross Value Added) up 14.5%, with domestic sectors growing at 2.2%.