Tánaiste welcomes confirmation of continued strong domestic economic activity

• Both GNI* and MDD - the key de-globalised measures of economic activity – grew by 4.7 per cent last year.
• Consumer spending grew by 2½ per cent last year.
• GDP grew by 8 per cent in 2025, driven by an increase in pharmaceutical exports to the US.
• In the first quarter of 2026, Modified Domestic Demand increased by 3½ per cent annually.

The Central Statistics Office today (2nd July) published the Annual National Accounts for the full year 2025 and revised estimates for the first quarter of 2026.

Commenting on the figures, the Tánaiste and Minister for Finance, Simon Harris. T.D. said:

“I welcome today’s data from the CSO which confirms that the domestic economy

continued to grow strongly last year. Rising real incomes, boosted by a robust labour market, supported consumer spending, which grew solidly by 2½ per cent. At the same time, investment activity benefitted from the expansion in housing output and significant capital spending in the multinational sector. Overall, both Modified Domestic Demand and Modified Gross National Income increased by 4.7 per cent in 2025.

“Today’s data also confirms that this momentum continued into the first quarter of this year with Modified Domestic Demand growing at an annual rate of 3½ per cent.

“Looking ahead, my Department identified three economic scenarios in the Annual Progress Report based on alternative paths for future energy prices: reference, adverse and severe. The agreement between the US and Iran to solidify their ceasefire and re-open the Strait of Hormuz – an agreement which I welcome – means that the risk of the more severe outcome now appears to be receding.

“Geopolitical events in the first half of this year underline the importance of continuing to build up our resilience to future shocks and tackle longer-term structural challenges, including by accelerating the transition away from fossil fuel imports.

“In terms of the forthcoming budget, the next stepping stone is the publication of the mid-year exchequer position, which Minister Chambers and I will do tomorrow. Thereafter, Government will publish its Summer Economic Statement in the coming weeks, setting out the broad parameters for Budget 2027.”