Irish economy returns to growth as GDP rises 0.9% in first quarter

Follows five quarters of GDP contraction

Modified Domestic Demand (MDD), the measure of domestic activity went up by 1.4%.

The Irish economy returned to growth in the first three months of the year following five consecutive quarters of contraction.

New data from the CSO shows a 0.9% increase in GDP compared to the first quarter of 2023. Modified Domestic Demand (MDD), the measure of domestic activity went up by 1.4%.

The economy had recorded a 1.9% drop in GDP for 2023, largely caused by a drop in pharmaceutical exports after the uplift from the covid years faded. However, the MDD figure for last year reported growth of 0.5%.

The CSO said that in the first quarter, personal spending on goods and services increased by 0.6% in the quarter while Government spending on goods and services fell by 1.1%. Net exports of goods & services rose by 85.3% in Q1 2024 or by €19.4bn.

There was a mixed picture for sectors focused on the domestic market, but with overall growth of 1.7% combined. The professional, administrative & support sector grew by 6.7% in the quarter while the arts & entertainment sector expanded by 4.2%.