A contraction in the multinational-dominated sector led to a fall in gross domestic product (GDP) during the final months of 2025, new preliminary data from the Central Statistics Office (CSO) shows.
According to the CSO, gross domestic product contracted by 0.6% between October and December 2025 compared to the previous three months, largely driven by a decrease in the industry sector, which includes pharmaceuticals.
Early estimates indicate that Gross Domestic Product decreased by 0.6% in Quarter 4 2025https://t.co/YmGRrLzeaB#CSOIreland #Ireland #NationalAccounts #BalanceofPayments #Economy #Economics #Macroeconomics #EconomicIndicators #CapitalStocks #FixedAssets pic.twitter.com/iTIkOczfqu
— Central Statistics Office Ireland (@CSOIreland) January 29, 2026
Pharmaceuticals are the country’s largest export category. Between January and November 2025, medical and pharmaceutical products accounted for €132.8bn worth of exports, up from the €93.4bn recorded during the same period in 2024.
The sector saw a huge surge in exports during the first few months of 2025, as companies frontloaded shipments to the US in advance of the introduction of tariffs by US president Donald Trump in April.
GDP growth has not been consistent through the year. In the first three months of the year, GDP grew, quarter-on-quarter, by 7.4%, largely due to the surge in exports.
However, since then it has stalled.
Between April and June, GDP grew by 0.3% compared to January through March. Between July and September, GDP contracted by 0.3%.
While quarter-on-quarter growth is stagnant, GDP is still growing compared to the same period in 2024. Between October and December, GDP is estimated to have grown by 3.7%.
While this is still positive, it is still down from the annual growth rate recorded in previous quarters during 2025.
The CSO advised these results were subject to revisions in the Quarterly National Accounts quarter four 2025 release, which will be published in early March.
GDP is not the most accurate measure of the Irish economy as it can be skewed by the presence and profits of the numerous multinationals with operations here.
As a result, modified domestic demand or modified gross national income are the preferred measures of the Irish economy, as they strip out the impacts of these multinationals.
