Summary Q2 2026
Irish Economy
Modified Domestic Demand (MDD) grew by 4.3% in Q1 2026, driven by strong multinational investment in AI, data centres and construction, despite early signs of slowing domestic activity.
More domestic indicators, including consumer spending, tax receipts and labour market data, point to moderating growth, while the Central Bank’s Business Cycle Indicator suggests economic momentum weakened towards the end of the quarter. Overall, the economy continues to expand but at a more measured pace, with underlying conditions softening.
Global Economy
According to Euromonitor, the global growth outlook for 2026 has been revised down to 2.9% as energy market disruption and geopolitical conflict drive higher inflation, trade costs and economic uncertainty. Advanced and emerging economies face differing levels of resilience, with energy security and supply chain strength becoming increasingly critical to sustaining growth.
Start-ups
Irish start-up activity remained robust in Q2 2026, with a record first half of the year reflecting sustained entrepreneurial confidence despite ongoing global economic uncertainty and cost pressures.
Housing Market
MyHome reports that Ireland’s housing market saw asking price inflation rise to 5% in Q2 2026, with persistent supply constraints and strong buyer competition outweighing affordability pressures despite improving housing supply and construction activity.
Irish GDP
Preliminary CSO figures indicate that GDP increased by 3.9% in Q2 2026, primarily driven by an increase in the multinational dominated sector of Information & Communication.
