Ireland: Economy slips into contraction in the third quarter of 2025
GDP reading: Ireland’s GDP shrank 0.3% on a seasonally adjusted quarter-on-quarter basis in Q3, following a 0.3% expansion in the previous quarter. Q3’s reading was the weakest since Q4 2023.
Drivers: Relative to the previous period’s data, the reading for private consumption softened in Q3 (+0.1% in seasonally adjusted quarter-on-quarter terms vs +0.9% in Q2). In contrast, readings strengthened for government consumption (+2.1% vs +2.0% in Q2), fixed investment (+12.5% vs -36.5% in Q2), exports of goods and services (+2.1% vs -3.6% in Q2) and imports of goods and services (+10.4% vs -10.6% in Q2).
On a year-on-year basis, the economy grew 10.8% in Q3, following 17.2% growth in the prior quarter.