The domestic economy, excluding the impact of foreign companies, grew by a healthy 3.8% in the first six months of the year.
But when the impact of multinationals is included Gross Domestic Product surged by 18.5% due to strong exports - particularly in the pharmaceutical sector.
The Central Statistics Office, which published National Accounts today, also said that the multinational dominated sectors of the economy had grown by 37.1% in the first half of the year.
Exports were up 40%, while personal consumption rose by 3% in the first half of the year.
Pay for workers rose 1.4% in the six month period.
Chris Sibley, assistant director general of the CSO, said there had been "very strong growth in exports" in the first quarter of 2025 but that had been sustained into the second quarter.
He added there was a "very important domestic story" with consumption and investment rising.
In the second quarter of this year, Gross Domestic Product, which includes the impact of multinationals, is up 0.2%, today's CSO figures show.
Modified domestic demand, which is a better measure of domestic activity in the economy, rose by 0.6%.
Commenting on today's CSO figures, Minister for Finance Pascal Donohoe said that GDP remained elevated in the second quarter on the back of significant production in the multinational sector.
"The elevated level of activity in the first half of the year is attributable, in part, to the front-loading of exports to the US in advance of tariffs. This is expected to moderate over the coming quarters," the Minister said.
Noting that GDP is not an accurate reflection of living standards in Ireland, he said his preferred metric - Modified Domestic Demand - presents a better approximation of domestic activity.
"On this basis, the domestic economy grew by 0.6% relative to the previous quarter and is up around 3¾% in the first half of the year on an annual basis," Paschal Donohoe said.
He said he was particularly encouraged by the increase in investment in the second quarter.
"Indeed, despite elevated uncertainty, modified investment recorded an annual increase of over 7% on an annual basis, driven by activity in the building and construction sector," he noted.
But looking forward, Mr Donohoe said the international outlook remains very challenging.
"While the Government welcomes the degree of certainty provided by the Framework Agreement between the EU and the US on trade published last month, the imposition of widespread tariffs will, of course, weigh on growth over the coming years," he said.
"Given the more challenging external backdrop, it is imperative that policy remains focussed on boosting the resilience of the Irish economy. That is why Budget 2026 will be framed around investment. This will help maintain competitiveness and boost productivity which is the foundation for long-term improvements in living standards," the Minister added.
Meanwhile, EY Ireland Chief Economist Dr Loretta O'Sullivan said the rush by businesses to get ahead of US policy shifts is evident in the figures published by the CSO today.
"Tariff front-running by the pharmaceutical sector in particular buoyed exports and GDP in the first quarter of 2025, but this activity moderated somewhat in the second quarter," the Professor noted.
"Looking past these trade-related distortions and at domestic indicators, it is encouraging to see that record high employment is lending support to consumer spending, which expanded at a good pace in the first six months of the year," she said.
"While a growing economy and a strong labour market are among Ireland's many strengths, policies to shore up competitiveness and build resilience will be important in mitigating global headwinds in the period ahead," she added.
