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Irish Post
3 days ago
- Business
- Irish Post
Irish economy grew in first quarter of year due to exporting increase ahead of US tariffs
IRELAND'S GDP increased by 9.7 per cent in the first quarter of this year new figures show. The Central Statistics Office published the Quarterly National Accounts for the first quarter of 2025 today. They show the rise in gross domestic product (GDP) which was driven by a substantial increase in goods exports as firms' rushed to export to the US ahead of the proposed higher tariff's due to be implemented by President Trump on EU goods. Finance Minister Pascal Donohoe 'I note the substantial quarterly increase in Gross Domestic Product (GDP) of 9.7 per cent in the first quarter of this year,' Finance Minister Pascal Donohoe said today. 'This was driven by a significant increase in the export of goods, and reflects, in large part, the 'front-loading' of exports in anticipation of the imposition of tariffs by the US administration,' he explained. 'This is also a feature in other countries, though the scale is much larger in Ireland. 'My officials assess this as likely to be temporary – with exports and GDP likely to moderate over the course of this year.' Elsewhere the figures show the nation's Modified Domestic Demand – which is deemed a more appropriate indicator of activity in the domestic economy – grew by 0.8 per cent relative to the previous quarter and by one per cent on an annual basis. Consumer spending grew at a pace of 2.5 per cent in the first quarter according to the report. 'Today's results highlight, once again, that GDP is not an accurate reflection of economic activity happening 'on the ground',' Minister Donohoe said. 'This is why alternative indicators, such as Modified Domestic Demand, are so important in an Irish context. 'On this basis, the domestic economy grew by 0.8 per cent in the first quarter. 'This is a more accurate reflection of developments in the domestic economy and is consistent with the strength of our labour market – with a record 2.8 million people in employment at the beginning of the year.' Mr Donohoe claims the figures confirm the 'relatively strong position of the domestic economy at the start of this year'. 'Looking ahead, however, the economic outlook has become increasingly challenging,' he added. 'Indeed, the significant increase in uncertainty is likely weighing on growth,' Mr Donohoe suggested. 'In this more challenging global environment, we must focus on policy areas where we can exert influence. "In particular, continuing to boost our competitiveness will be key to ensuring that Ireland remains an attractive place to live, work and invest – not just today, but over the long term.' See More: Economy, Exporting, GDP, Ireland, Tariffs, US
BBC News
06-03-2025
- Business
- BBC News
Republic of Ireland: Economy grew at 'a solid pace' in 2024
The Republic of Ireland's domestic economy grew by 2.7% in 2024, official figures 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 figures suggest that Irish GDP grew by 1.2% in 2024. Finance Minister Pascal Donohoe said the figures confirmed that "the domestic economy grew at a solid pace last year, marginally ahead of my department's forecast".He added: "The growth in the domestic economy is consistent with the strength of our labour market – with a record 2.8m people in employment last year."Donohoe warned that the increasingly uncertain global outlook could have negative consequences for Ireland which he described as "a major beneficiary of global economic integration". Trump's trade measures The United States is Ireland's single biggest export market for manufactured goods, with sales of €72.6bn (£60.4bn) in goods could be hit with import taxes, known as tariffs, if President Trump extends his protectionist trade measures to the this week, Trump imposed 25% tariffs on goods entering the US from Canada and colleague, Public Expenditure Minister Jack Chambers, said there had been "extensive contingency planning" regarding tariffs."We know that tariffs will bring serious disruption, damage, and will undermine the international trading environment, which has been the backbone of the Irish economy," he told RTÉ radio."That's why there's scenario planning across all of the different possibilities which might emerge."
