Ireland, a small open economy with a population of 5.46 million, has achieved remarkable economic growth in recent years, expanding by 27%—equivalent to 65 billion euros—between 2019 and 2024. This surge has been driven primarily by a strong multinational presence in technology, manufacturing, and pharmaceuticals, alongside steady but reduced domestic demand. The country’s strategic integration into global supply chains and favorable corporate environment have attracted significant foreign direct investment, fueling export-oriented production and high-value services. n nMultinational enterprises continue to play a dominant role in Ireland’s economic performance, contributing disproportionately to GDP, employment in high-skilled sectors, and tax revenues. The tech and pharma industries, in particular, have benefited from Ireland’s skilled workforce, research partnerships, and stable regulatory framework. This external-facing model has enabled rapid output growth, although it also exposes the economy to global demand shifts and international tax policy changes. n nDomestic demand, while present, has grown at a more moderate pace. Household consumption and investment have been constrained by housing affordability challenges and elevated living costs, which have weighed on disposable income. Despite these pressures, labor market conditions have remained relatively tight, supporting wage growth and underpinning consumer resilience. n nLooking ahead, Ireland’s economic trajectory will depend on its ability to sustain foreign investment inflows while addressing structural domestic constraints. Policies aimed at expanding housing supply, improving infrastructure, and enhancing digital connectivity are expected to support long-term competitiveness. Additionally, efforts to diversify the economic base beyond multinationals—by fostering indigenous innovation and scaling domestic enterprises—could reduce vulnerability to external shocks. n nWith global economic conditions remaining uncertain, Ireland’s reliance on multinational activity presents both opportunities and risks. Continued policy stability, investment in human capital, and strategic public-private collaboration will be essential to maintaining its position as a hub for global business while ensuring inclusive growth across the population. n— news from Deloitte
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Global economic outlook 2026
Ireland n n– Kate English n nIreland is a small open economy on the edge of Europe, with a population of 5.46 million.61 The country has achieved remarkable economic expansion in recent years, with the economy growing by 27% (65 billion euros) from 2019 to 2024.62 This stemmed from a robust multinational sector (tech, manufacturing, and pharmaceuticals) and steady, albeit lower