Ireland GDP Growth: 9% Rise Due to Exports
Irish and Northern Irish Economic Outlook: Growth Forecasts for 2025-2026
Updated october 1, 2025
Republic of Ireland economic Performance
The Republic of Ireland’s domestic economy is projected to grow by 3.2% in 2025 and 2.6% in 2026, according to forecasts released by consultancy EY. When including the impact of multinational corporations, Gross Domestic Product (GDP) is estimated to increase by a considerable 9% in 2025.
This meaningful GDP growth is partially attributed to a surge in exports earlier in the year, as multinational companies accelerated activity to pre-empt potential tariffs imposed by the former Trump administration. Inflation is expected to remain stable at 2% throughout 2025 and 2026.
EY Chief economist Loretta O’Sullivan noted the Irish economy is “navigating current complexities from a position of strength,” citing a healthy labor market as a key driver of consumer confidence and increased public capital investment as a support for future growth.
Northern Ireland Economic Outlook
The economy of Northern Ireland is forecast to expand by 1.3% in 2025 and 1.2% in 2026. Positive performance in the labor market and improved consumer sentiment, bolstered by declining interest rates, are contributing factors to this growth.
The Bank of England is anticipated to continue lowering interest rates as UK inflation gradually decreases, possibly bringing the bank rate to 3.5% by the end of 2026. these lower rates are expected to stimulate both business investment and household spending.