Domestic economy sees 3.1% growth in first half of 2026

The domestic economy grew by a healthy 3.1% in the first six months of this year, according to the latest figures from the Central Statistics Office.

The strong performance was driven by personal spending which was up 2.8% in the first half of 2026.

The domestic sectors of the economy were up 1.7%.

Today’s figures mean the economy is in a strong position ahead of the Budget which will be announced on October 6.

However, the CSO figures show volatile output by multinationals resulted in a 7% fall in Gross Domestic Product (GDP) – the measure of the economy which includes the impact of foreign companies – in the first six months.

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The multinational dominated sectors of the economy fell by 11.5%.

This was mainly caused by a surge in pharmaceutical exports in March 2025 which was not repeated this year and consequently resulted in an overall fall in output by multinationals this year.

Tánaiste and Minister for Finance Simon Harris said the CSO figures show the domestic economy continued to grow on an annual basis in the second quarter, with Modified Domestic Demand expanding by 1.75%.

He said that while quarterly figures can be volatile, annual growth of 3.1% over the first half of this year confirms continued momentum in the domestic economy.

“Today’s data point to ongoing resilience in the domestic economy. However, we cannot become complacent. Indeed, external risks remain elevated and have intensified over recent months. The conflict in the Middle East remains unresolved, with significant implications for energy prices,” Mr Harris said.

“Furthermore, recent developments in financial markets – in particular elevated sovereign debt yields and the re-pricing of fiscal risk – pose additional challenges to a global economic backdrop that is already in a state of flux,” he said.