Summary Q1 2026
Irish Economy
Quarterly National Accounts data show strong investment growth drove a rebound in Modified Domestic Demand (MDD) in 2025, rising 4.9% for the year and 6.7% in Q4, marking a clear acceleration from 2024, largely driven by domestic construction and multinational-led investment, alongside gains in software and R&D. However, broader indicators point to moderating momentum, with slower jobs growth, weaker domestic sector output, and the Central Bank’s Business Cycle Indicator suggesting activity softened slightly from mid-2025.
Global Economy
According to Euromonitor, the global economy remains resilient, supported by easing inflation, accommodative policy and strong technology investment, though growth is set to ease slightly to 3.1% in 2026 amid ongoing trade and geopolitical uncertainty. Advanced economies face constrained growth while developing markets lead expansion, with moderating inflation providing support but persistent risks from tariffs, geopolitical tensions and structural pressures on prices.
Start-ups
Company start-ups rose 14% year-on-year in Q1 2026, driven by strong sectoral and regional growth, signalling continued entrepreneurial confidence despite a more cautious outlook reflected in declining commercial judgments and fewer first-time directors.
Housing Market
MyHome reports, Ireland’s housing market is showing moderating price growth, with asking price inflation easing to 4.7% amid affordability pressures and slower mortgage activity, though constrained supply and strong demand continue to sustain competition.
Irish GDP
Preliminary CSO figures indicate that GDP declined by 2.0% in Q1 2026, primarily driven by a contraction in the multinational-dominated industrial sector.
