“I note the substantial quarterly increase in Gross Domestic Product (GDP) of 9.7 per cent in the first quarter of this year.

“This was driven by a significant increase in the export of goods, and reflects, in large part, the ‘front-loading’ of exports in anticipation of the imposition of tariffs by the US administration. This is also a feature in other countries, though the scale is much larger in Ireland. My officials assess this as likely to be temporary – with exports and GDP likely to moderate over the course of this year.

“Today’s results highlight, once again, that GDP is not an accurate reflection of economic activity happening ‘on the ground’.

“This is why alternative indicators, such as Modified Domestic Demand, are so important in an Irish context. On this basis, the domestic economy grew by 0.8 per cent in the first quarter (or 1 per cent on an annual basis). This is a more accurate reflection of developments in the domestic economy and is consistent with the strength of our labour market – with a record 2.8 million people in employment at the beginning of the year.

“Today’s figures confirm the relatively strong position of the domestic economy at the start of this year. Looking ahead, however, the economic outlook has become increasingly challenging. Indeed, the significant increase in uncertainty is likely weighing on growth.

“In this more challenging global environment, we must focus on policy areas where we can exert influence. In particular, continuing to boost our competitiveness will be key to ensuring that Ireland remains an attractive place to live, work and invest – not just today, but over the long term.”

---

Notes