The Central Statistics Office has published the Quarterly National Accounts for the second quarter of 2025 confirming GDP increased by 0.2 percent in the second quarter of this year and Modified Domestic Demand grew by 0.6 per cent in the quarter.
The publication outlines a growth of 3.7 percent in wages in the quarter and a continual growth in consumer spending of one percent over the quarter.
Commenting on the figures, Minister for Finance, Paschal Donohoe said:
“I note that GDP remained elevated in the second quarter driven by 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.
Of course, GDP is not an accurate reflection of living standards in Ireland. Indeed, my preferred metric – Modified Domestic Demand – presents a better approximation of domestic activity. On this basis, the domestic economy grew by 0.6 per cent relative to the previous quarter and is up around 3.75 per cent in the first half of the year on an annual basis. This is consistent with the strength of the labour market where the number in employment reached an all-time high of over 2.8 million in the second quarter.
I am particularly encouraged by the increase in investment in the second quarter. Indeed, despite elevated uncertainty, modified investment recorded an annual increase of over 7 per cent on an annual basis, driven by activity in the building and construction sector.”
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