Irish economy shrank by 1.6% in 12 months to June, CSO estimates
Ireland's GDP contracted by 1.6% over the year ending in June, though the economy saw a 3.9% increase between the first and second quarters. Analysts note that these figures are heavily distorted by multinational activities, particularly in the ICT sector.
Why it matters
Understanding the nuances of Irish economic data is critical for global investors, as multinational tax and intellectual property transactions often mask the true health of the domestic economy.
Ireland’s economy is estimated to have shrunk by 1.6 per cent in the 12 months to the end of June, the Central Statistics Office (CSO) said on Wednesday. However, the volatile numbers come on the back of a surge in exports last year as pharma firms here rushed to stockpile products in the US before Donald Trump ’s tariffs.
Still, Irish gross domestic product (GDP) – the total value of goods and services produced in the economy – increased by 3.9 per cent between the first and second quarter of the year, according to the CSO data, which will be subject to revision.
It meant that on an annual basis, GDP had contracted by an estimated 1.6 per cent compared with the 13 per cent decline observed in the 12 months to the end of March.
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