US GDP Q3 Growth Slows to 0.1%
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ireland’s GDP Rises 10.5% in Q3 2025, Driven by ICT Despite Pharmaceutical Export Slowdown
Table of Contents
Overview
Ireland’s Gross domestic Product (GDP) experienced a meaningful increase of 10.5% in the third quarter of 2025 compared to the same period in 2024, according to preliminary figures released by the Central statistics Office (CSO) on October 28, 2025. This follows a 7% GDP increase in the first three months of 2025, largely attributed to pharmaceutical companies accelerating exports ahead of anticipated US tariffs. While the initial surge from pharmaceutical activity has subsided, growth has been sustained by strong performance in the information, communications, and technology (ICT) sector.
Key Findings and Sector Performance
CSO senior statistician Kieran Culhane described the overall economic picture as ”flat” despite the headline GDP figure, noting continued robust activity within the ICT sector. The slowdown in the multinational-dominated industrial sector, particularly pharmaceuticals, was anticipated after the initial boost from tariff-related export activity began to unwind. EY Ireland’s chief economist, Dr. Loretta O’Sullivan,confirmed this expectation,stating the results were “in the expected direction.”
Recent retail sales data indicates solid consumer spending in September, suggesting the domestic economy is maintaining its strength. This positive consumer activity is helping to offset the deceleration in export-driven growth.
GDP vs. Modified Domestic Demand (MDD)
The irish Government has consistently advised against relying solely on GDP as an accurate measure of economic health due to its susceptibility to distortion from the activities of large multinational corporations. The government’s preferred metric, Modified Domestic Demand (MDD), provides a more representative view of the domestic economy. However, MDD figures are not included in the CSO’s initial GDP estimates. This distinction is crucial for understanding the true state of the Irish economy, as GDP can be inflated by activities that don’t directly benefit the Irish population.
MDD focuses on domestic spending, including consumption, investment, and government expenditure, offering a clearer picture of economic activity within Ireland itself. The CSO plans to release MDD figures at a later date, providing a more comprehensive assessment of economic performance.
Data Caveats and Revisions
The CSO’s preliminary GDP figures are subject to revision as more complete data becomes available. Kieran Culhane cautioned that “a bit of caution” should be exercised when interpreting the initial estimates. Revisions are common in national accounts data, particularly when dealing with complex multinational activity. the final figures will provide a more accurate reflection of economic performance in the third quarter of 2025.