According to initial calculations from the Central Statistics Office (CSO), Ireland’s economy has seen a decrease of 3.3 per cent in terms of gross domestic product (GDP) in the initial three quarters of the year. This slump is thought to be due to anomalies in the global sector, particularly in “contract manufacturing”, where products manufactured overseas are accounted for in the Irish GDP.
Most economic predictors anticipate about a 2 per cent growth in the Irish economy this year, as measured by Modified Domestic Demand (MDD), which is considered a more precise gauge of the domestic economy. Recently, Finance Minister Jack Chambers commented that due to the significant influence of the global sector on their economy, GDP does not accurately reflect the living standards of the regional inhabitants.
The preliminary estimates for the third quarter indicate that, compared to the previous quarter, the Irish economy grew by 2 per cent in terms of GDP . Early estimates also suggest a 1.2 per cent downturn in GDP for the third quarter, in comparison with the same quarter in 2023. The CSO associates this “moderate growth” with an upswing in activity in sectors controlled by multinationals, namely industry, and information and communication. The industrial sector incorporates the country’s extensive pharma sector, while big tech firms constitute much of the information and communication sector.