GDP projected to contract this year driven by multinational sector 

However, domestic economy expected to grow by 3.5%

Bank of Ireland is forecasting house price inflation to slow to about 4% in 2026. File picture

Gross domestic product (GDP) is expected to experience a contraction this year largely due to declines in the multinational-focused sectors, but the domestic economy will see some growth, a new economic analysis by Bank of Ireland has found.

The analysis is forecasting a 3% contraction in GDP this year largely due to a 6.5% contraction in the multinational sector. This reflects the surge in pharmaceutical exports in 2025, ahead of feared tariffs, now unwinding.