Ireland’s Gross Domestic Product (GDP) expanded by 10.2 per cent quarter-on-quarter in the second quarter of 2026, according to Quarterly National Accounts published by the Central Statistics Office (CSO). The strong rebound reverses two consecutive quarters of economic contraction, including a 7.8 per cent quarter-on-quarter decline recorded in the first three months of the year.

The increase in headline GDP was primarily driven by multinational-dominated sectors within the State. Output in the globalised industrial sector grew by 22.1 per cent in the three months to June, supported by a 17.1 per cent surge in exports. Information and communication activities expanded by 2.3 per cent over the same period. On an annual basis, GDP contracted by 0.4 per cent compared to the second quarter of 2025, marking a significant narrowing from the 13.2 per cent year-on-year decline registered in the first quarter.

In contrast to headline GDP figures, Modified Domestic Demand (MDD)—a metric widely used by economists to assess the domestic economy by excluding foreign multinational distortions—contracted by 0.8 per cent in the second quarter. The CSO attributed this decline largely to a pullback in capital formation and investment, which fell following elevated spending levels earlier in the year.

Despite the drop in quarterly investment, consumer activity remained solid. Personal spending on goods and services increased by 1.0 per cent quarter-on-quarter, while employee compensation rose by 1.3 per cent. Over the first six months of 2026 combined, modified domestic demand was 3.1 per cent higher than in the corresponding period of 2025.

Commenting on the release, Tánaiste and Minister for Finance Simon Harris stated that the data indicates underlying strength, noting that first-half domestic growth of roughly 3 per cent confirms continued momentum across domestic sectors despite international trade volatility.