Irish economy grew strongly in 2025

The Republic of Ireland's domestic economy grew by almost 5% in 2025, official figures suggest.

Irish domestic output is estimated using a measurement called modified domestic demand (MDD).

The economic performance of most countries is measured using gross domestic product (GDP), but Irish GDP is heavily distorted by the activities of multinational companies.

The figures suggest that Irish GDP grew by more than 12% in 2025.

Minister for Finance Simon Harris said the figures confirmed that "despite external headwinds, the domestic economy grew strongly last year."

He added that while the headline figures "may somewhat overstate the economy's underlying growth" official data suggests rising real incomes and a record number of people in employment.

Fears the Irish economy would be seriously hit by US President Donald Trump's tariffs have so far largely failed to materialise.

That is because tariffs have generally not been applied to pharmaceutical products which are Ireland's main export to the US.

The Irish economy has also been underpinned by a continuing corporation tax windfall.

A national wealth fund has been set up to invest some of that money but it is also allowing day-to-day government spending to increase which adds to economic growth.

The Irish government is also planning major infrastructure projects in the coming years, including Dublin's first underground railway line.

The Irish economy recovered strongly after the pandemic and is continuing to experience faster growth than most of its neighbours.

However many voters, particularly the under-35s, do not feel particularly prosperous due to high housing costs.

The jobs market is healthy but young workers see rents devouring a large chunk of their incomes.

The government says it is making progress on increasing house building but recent polls suggest voters are unconvinced.