Ireland GDP (EUR bn)

GDP growth records best reading in Euro area in the fourth quarter

According to a preliminary estimate, GDP growth picked up to 3.5% on a seasonally adjusted quarter-on-quarter basis in the fourth quarter from 2.3% in the third quarter. Q4’s reading marked the best result in the Euro area, and meant that the economy grew 12.2% in 2022—also the best result in the Euro area.

On an annual basis, economic growth gathered pace, accelerating to 13.5% in Q4, following the previous quarter’s 10.9% expansion. Q4’s reading marked the best result since Q4 2021.

Growth is expected to slow in the coming quarters. In Q1, most of our panelists expect the economy to contract, while in the following quarters growth is not expected to reach the highs seen in 2022. Although multinational balance sheet movements will continue to distort GDP readings and make them volatile, the non-multinational sector is already showing signs of slowing under the weight of rising interest rates and elevated inflation.