Economic growth increased 9.7% in the first three months of the year, boosted by a surge in technology and pharmaceutical exports to the United States ahead of tariffs imposed by President Donald Trump.
The strong gain in gross domestic product (GDP) in the first quarter of this year was driven by rising exports, particularly in the technology and pharmaceutical sectors.
Data provided by the Central Statistical Office (CSO) confirms that the national economy is showing stable growth, with public sector spending and the wage bill increasing.
Chris Sibley, deputy director general of the CSO, said such high GDP figures were “unusual”.
Many companies rushed to export their goods to the United States before Trump's tariff measures took effect.
The data show that total exports rose by 9.4% in the first three months of 2025, increasing by €18.2 billion, while goods exports grew by 14.8%, adding €13.5 billion.
Domestic economic growth rates were more moderate.
Modified domestic demand (MDD), which includes personal, government and investment spending, increased by 0.8%.
The current account balance amounted to EUR 6.6 billion, reflecting high levels of merchandise exports and increased income outflows.
The CSO noted that these figures highlight the impact of profit outflows and the need to revise the estimates of pharmaceutical stocks and exports to ensure accurate GDP measurements.
Personal spending on goods and services, an important indicator of domestic economic activity, rose 0.6% in the first quarter of the year, while wages rose 0.9% over the same period.
Growth was seen across all sectors except real estate, which fell 1 percent in the quarter.
Mr Sibley noted that data on foreign multinational enterprises (MNEs) show growth in 2024 and 2025, but the 9.7% increase is “unusual”.
“This is a significant rate of GDP growth in the first quarter of 2025,” he added.
He said data from the technology sector showed steady growth, but there was a sharp rise in pharmaceutical exports in the first three months of the year.
“We analyze all sectors of the economy, we look at all foreign and domestic sectors, and we see that all the growth is due to foreign sectors,” he added.
He added: “When we see significant changes in the pharmaceutical industry, as we did today, it's usually accompanied by something else, like royalties or other expenses. They have a boost, like a turnout, from a significant increase in revenue without the associated expenses.
“The gains that were made as a result of this, in the form of GDP, have actually given us impressive results today.
“These figures are always subject to revision, and we'll be watching them throughout the year. But that's what really drove the GDP results today – revenue growth without any corresponding spending.”
The data also shows that the globalized industry sector grew by 17.1% in the first quarter compared to the last quarter of 2024, while the information and communications sector saw growth of 3.8% over the same period.
Overall, the sector, which is dominated by multinational companies, grew by 12.4% in the quarter.
Finance Minister Paschal Donohoe said department officials assessed the rise in GDP as “temporary” and expected exports and GDP to decline over the course of the year.
“This was driven by a significant increase in goods exports and largely reflects a ‘preliminary’ increase in exports in anticipation of the introduction of tariffs by the US administration,” the minister said.
“Similar trends are seen in other countries, but in Ireland they are much larger in scale.
“Today’s results once again highlight that GDP is not an accurate reflection of economic activity taking place on the ground.
“This is why alternative indicators such as modified domestic demand play such an important role in the Irish context.
“On this basis, the domestic economy grew by
Sourse: breakingnews.ie
