GDP sees growth driven by multinationals after 2023 contraction 

Gross domestic product grew by 1.2% during the period April to June, preliminary figures by the CSO show

The rebound in GDP was largely driven by an increase in the industry sector which captures the activity of pharmaceutical giants, such as Pfizer, which have large operations in Ireland. 

Ireland’s gross domestic product (GDP) grew by 1.2% during the period April to June, marking the second quarter of growth in a row following a significant contraction across last year, new preliminary estimates from the Central Statistics Office (CSO) shows.

Statistician with the CSO Enda Behan said the quarter-on-quarter increase was driven by an increase in the multinational-dominated industry sector, which includes pharmaceutical companies.

GDP grew by 0.7% between January and March compared to the end of 2023.

However, when compared to the April to June period in 2023, GDP is estimated to have fallen by 1.4%. During the first six months of 2024, GDP contracted 3.1% year-on-year.

The GDP is subject to revision by the CSO, with the final figures set to be published in September. 

GDP is not considered the best metric for measuring the health of the Irish economy as it is heavily weighted towards the activity of multinational companies, many of which have significant operations in Ireland.

Modified domestic demand (MDD) or modified gross national income are the preferred metrics to measure the Irish economy.

Last year, GDP contracted by 5.5%, according to the CSO. This was largely attributed to the falloff in the pharmaceutical sector — due to the drop in demand for covid-related products following the pandemic — and a drop in exports.

In comparison, MDD during 2023 grew by 2.6%, while modified gross national income grew by 5%.