Irish economy expands by almost 10% as exporters rush to beat tariff deadlines
The Irish economy grew by almost 10 per cent in the first quarter, up from a previous estimate of 3 per cent, as exporters rushed to get merchandise in the US ahead of the imposition of
tariffs
.
Central Statistics Office (CSO)
data show the economy, as measured by gross domestic product (GDP), expanded by 9.7 per cent in January, February and March, one of the largest quarterly expansions on record.
The agency said the increase was 'driven by significant growth in exports of goods'.
Total exports expanded by 9.4 per cent in the first three months or by €18.2 billion with goods exports increasing by 14.8 per cent quarter-on-quarter, or €13.5 billion. The value of goods exports for the period was 44.1 per cent higher than a year earlier.
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Since April 5th, goods imported from all countries into the US have been subject to a 10 per cent tariff while US President Donald Trump has put a stay on a possible 50 per cent tariff on all EU imports until next month.
Pharma accounts for the lion's share of Irish goods exports to the US and companies in the sector here have been fast-tracking product into the US to avoid incoming tariffs.
The CSO's figures show the pharma-dominated
i
ndustry sector expanded by 17.1 per cent in the first quarter compared with the previous three-month period.
By contrast, the domestic economy, as measured by modified domestic demand (MDD), grew by a more modest 0.8 per cent in the first quarter as personal spending on goods and services, a key driver of domestic activity, increased by 0.6 per cent.
The information and communication sector, which contains the State's tech industry, posted an increase of 3.8 per cent over the same period.
'Today's GDP estimates for the first quarter of the year show that the Irish economy kicked off 2025 to a racing start,' said Robert Purdue, head of dealing at Ebury (Ireland).
'Irish exports took the lion's share of this growth as many businesses rushed to export goods to the United States before President Trump's tariff sanctions came into effect,' he said.
'While the GDP rebound is an encouraging sign of the resilience of the Irish economy, it also demonstrates its heavy exposure to trade challenges, with exports playing a vital role in the health of the economy,' he said.
Separate figures from the CSO put the State's seasonally adjusted unemployment rate in May at 4 per cent, down from a rate of 4.1 per cent.
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