Ireland Economic Outlook
A global business hub:
Ireland has emerged as one of Europe’s fastest-growing economies, largely due to its favorable business environment, low corporate tax rates, and strong foreign direct investment (FDI). The country serves as a European headquarters for major multinational corporations, particularly in technology, pharmaceuticals, and financial services. As a result, Ireland has one of the highest GDP per capita figures in the world, although this is partly inflated by multinational profit shifting.
Tech and pharma dominance:Ireland is a key global player in the technology and pharmaceutical industries, hosting major firms such as Apple, Google, Pfizer, and Facebook. These sectors drive exports and employment, though Ireland’s dependence on multinational corporations poses risks—especially if global tax reforms or regulatory changes reduce its attractiveness as an investment destination.
Housing and inflation challenges:Despite its economic success, Ireland faces significant challenges related to housing affordability and infrastructure constraints. Rapid population growth and strong labor market demand have led to rising property prices and rental costs, putting pressure on household incomes. Additionally, inflationary pressures, particularly in energy and food prices, have affected consumer spending and economic sentiment.
Ireland’s economic outlook:The Irish economy is expected to remain one of the strongest performers in the EU, driven by FDI, a skilled workforce, and continued trade integration with Europe and the U.S. However, risks include global tax policy changes, Brexit-related trade adjustments, and housing market imbalances. Ensuring sustainable growth will require investment in housing, infrastructure, and workforce upskilling to maintain Ireland’s competitive edge.
Ireland's Macroeconomic Analysis:
Nominal GDP of USD 551 billion in 2023.
GDP per capita of USD 103,423 compared to the global average of USD 10,589.
Average real GDP growth of 7.7% over the last decade.
Sector Analysis
In 2022, services accounted for 57% of overall GDP, manufacturing 34%, other industrial activity 8%, and agriculture 1%. Looking at GDP by expenditure, private consumption accounted for 27% of GDP in 2023, government consumption 12%, fixed investment 27%, and net exports 34%.International trade
In 2020, manufactured products made up 90% of total merchandise exports, mineral fuels 0%, food 8%, ores and metals 1% and agricultural raw materials 0%, with other categories accounting for 1% of the total. In the same period, manufactured products made up 82% of total merchandise imports, mineral fuels 7%, food 9%, ores and metals 1% and agricultural raw materials 0%, with other goods accounting for 1% of the total. Total exports were worth USD 330 billion in 2023, while total imports were USD 162 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 7.7% in the decade to 2024. To read more about GDP growth in Ireland, go to our dedicated page.
Fiscal policy
Ireland's fiscal deficit averaged 1.4% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 6.6% in the decade to 2024. For more information on Ireland's unemployment click here.
Inflation
Inflation averaged 1.7% in the decade to 2024. Go to our Ireland inflation page for extra insight.
Monetary Policy
Euro Area monetary policy rate ended 2024 at 3.15%, up from 0.05% a decade earlier. See our Ireland monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the euro weakened by 20% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Ireland
A second reading notably revised up Q4 GDP growth to 3.6% seasonally adjusted quarter on quarter from an initial 1.3% contraction, slowing from Q3's 4.1%, but still outpacing other advanced economies. Over 2024 as a whole, the economy grew 1.2% (preliminary reading: +0.3%), up from 2023’s 5.5% shrinkage, but still the second-worst result since 2012: Fixed investment plummeted 25.4%, weighed on by weak multinational activity, which tends to be volatile. Turning to the new year, downside risks to the outlook mount; the Irish Prime Minister visited U.S. President Donald Trump on 12 March in a bid to smooth tensions over Ireland’s EUR 50 billion trade surplus with the U.S., which exists thanks to the heavy presence of U.S. multinationals lured by a low corporate tax rate. Despite the visit, the risk of tariffs—and of subsequent significant damage to Ireland’s economy—remains.Ireland Economic Forecasts
Projections out to 2034.46 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 18 expert analysts.
Want to get insight on the economic outlook for Ireland in the coming years? FocusEconomics collects projections out to 2034 on 46 economic indicators for Ireland from a panel of 18 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Ireland economy. To download a sample report on the Ireland's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.