Irish economy contracts in first quarter on multinational industry hit

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

The Irish economy shrank in the first quarter of this year, data showed on Friday, following a major contraction in the multinational-dominated industry sector.

Gross domestic product decreased by 4.6% in the first three months of 2023 from the fourth quarter of 2022, according to the Central Statistics Office. This decline was revised from an original estimate that indicated a lesser decline of 2.7%.

In the fourth quarter of 2022, Ireland’s economy grew by 0.6%. In the same quarter a year prior, GDP rose by 6.3% quarter-on-quarter.

The economy took a hit in the first quarter of this year from multinational dominated sectors, which contracted by 16%.

All other sectors grew by 2.7% in the quarter.

Modified domestic demand, a broad measure of underlying domestic activity that covers personal, government, and investment spending, increased by 2.7%.

Gross national product, which excludes the profits of multinationals, declined by 8.0% in the recent quarter from the fourth quarter of last year, when it had risen by 4.7% from the third quarter.

Copyright 2023 Alliance News Ltd. All Rights Reserved.