Economy grew 3.2% by GDP in Q1 as multinationals prepared for tariffs

The economy as measured by gross domestic product (GDP) grew 3.2% in the first quarter as multinationals accelerated production ahead of the introduction of US tariffs The Central Statistics Office (CSO) said the expansion was driven mainly by multinational-dominated sectors, although there was more modest growth in the domestic economy. On an annual basis, GDP is estimated to have increased 13.3% from the first quarter of last year. The preliminary results are subject to revision in the Quarterly National Accounts Q1 release, which will be published in June. The rate of quarterly growth slowed for the second successive quarter, from 4.1% in Q3 and 3.6% in Q4, while the rate of annual growth accelerated from 9.2% in Q4. The economy as measured by GDP had contracted on an annual basis for five consecutive quarters prior to the third quarter of 2024, shrinking by as much as 9.1% year-on-year in Q4 2023, again due to multinational activity. These preliminary estimates are based on forecasting and data sources that are limited in scope when compared with those used for compiling GDP in the CSO’s Quarterly National Accounts," said Enda Behan, statistician in the national accounts integration division of the CSO.  "The data sources include information from the CSO Large Cases Unit, Retail Sales, Administrative Payroll Data and other indicators of activity." The GDP figures come after the value of exports to the US was found to have more than tripled (+210.5%) to €8.7bn in February in preparation for White House tariffs. The economy grew 3.2% in the first quarter of the year. After previously announcing a 25% tariff on imports of automobiles and parts, US President Donald Trump this month imposed a 20% tariff on all EU goods entering the US before postponing it for 90 days. In January, Ibec forecast that GDP would increase by 1.7% in 2025 and 2.1% in 2025. (Pic: Getty Images)

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