In the opening quarter of 2024, the Irish economy experienced a resurgence, predominantly as a consequence of increased activity within the technology sector that’s primarily controlled by multinationals. Initial data supplied by the Central Statistics Office (CSO) suggest that the gross domestic product (GDP) witnessed a 1.1% rise in the first three months of the year, compared to the preceding quarter.
Due to significant declines in export sales, GDP saw a contraction for the five quarters preceding this growth, leading the Irish economy into a technical recession, which is characterised by two consecutive quarters of negative growth. Despite the previous year’s contraction in GDP, modified domestic demand (MDD), considered a more precise indicator of domestic activity, managed to maintain positive figures.
Speaking on new EU cybersecurity regulations, businesses have been warned to comply or face potential penalties and suspension of executives. Michael McGrath, the Minister for Finance, opined that the GDP might not be a reliable indicator of domestic living standards due to the significant influence of the multinational sector.
According to Enda Behan from the CSO, GDP in the first quarter of 2024 is believed to have experienced a 1.1% growth in volume terms compared to the last quarter of 2023. This growth can be attributed to a surge in the Information and Communication sector, dominated by multinationals, he also pointed out that a 0.8% GDP reduction was estimated during the same quarter of 2023.