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GDP in Ireland to rise by 9% this year due to strong exports

The GDP figure has partly been driven by exceptionally strong exports in the face of tariff threats
The GDP figure has partly been driven by exceptionally strong exports in the face of tariff threats

The domestic economy will grow by 3.2% this year and 2.6% in 2026, according to a forecast by consultancy EY.

It estimated that Gross Domestic Product, which includes impact from multinationals, will rise by 9% this year.

The GDP figure has partly been driven by exceptionally strong exports as multinationals raced to beat the imposition of tariffs by the Trump administration earlier this year.

It said inflation will remain at 2% this year and next.

Chief economist Loretta O'Sullivan said: "The Irish economy is navigating current complexities from a position of strength.

"The labour market is healthy, which is an important confidence factor for consumer spending, and additional funding for public capital projects will support investment over the coming years."


Read more: Irish economy, as measured by national income, up 4.8% in 2024 - CSO


EY said the economy of Northern Ireland will grow by 1.3% this year and 1.2% in 2026.

It said the jobs market in the north has performed well this year so far, and consumer sentiment has improved, helped by falling interest rates.

The Bank of England is expected to continue to reduce rates next year as inflation in the UK gradually declines, taking the bank rate to 3.5% by the end of 2026.

Lower rates should help support investment by businesses and consumer spending by households, it said.