Ireland’s domestic economy expanded by 3.1% during the first six months of 2026, according to the latest figures from the Central Statistics Office (CSO), pointing to continued strength ahead of the Government’s Budget announcement in October.
The growth was supported by stronger household spending, with personal consumption rising by 2.8% in the first half of the year. Domestic sectors of the economy also recorded growth of 1.7% during the period.
The figures suggest that activity within Ireland’s domestic economy remains resilient, although headline economic output was affected by large swings in the multinational sector.
Gross Domestic Product, which includes the contribution of foreign-owned companies operating in Ireland, fell by 7% in the first six months of 2026. Output from multinational-dominated sectors dropped by 11.5%.
The CSO attributed much of the decline to an unusually large increase in pharmaceutical exports recorded in March 2025. That surge was not repeated this year, creating a significant year-on-year difference and contributing to the decline in multinational output.
The figures come as the Government prepares for the Budget, which is due to be announced on October 6. The performance of the domestic economy is expected to be closely watched as policymakers assess Ireland’s financial position and the outlook for economic activity.
Tánaiste and Minister for Finance Simon Harris said the latest data showed that the domestic economy continued to expand on an annual basis during the second quarter.
Modified Domestic Demand, a measure that focuses on activity within Ireland while excluding some of the effects of multinational companies, grew by 1.75%, he said.
Mr Harris acknowledged that quarterly economic figures can fluctuate significantly but said the 3.1% expansion recorded during the first half of the year demonstrated that the domestic economy continued to maintain momentum.
“Today’s data point to ongoing resilience in the domestic economy,” Mr Harris said.
He also warned against becoming complacent, pointing to a number of external threats facing Ireland and the wider global economy.
The ongoing conflict in the Middle East remains a particular concern, with the Government watching its potential effect on energy prices. Higher energy costs could add pressure to households and businesses while affecting inflation.
Mr Harris also highlighted developments in international financial markets. Elevated sovereign debt yields and changes in how investors assess fiscal risks could create additional challenges for the global economy.
The latest CSO figures therefore present a mixed picture, with solid domestic growth offset by weaker multinational activity. The figures are likely to add to the economic backdrop as the Government prepares to set out its spending and taxation plans in October.
