Gross Domestic Product (GDP) fell by 12.1% in Quarter 1 (Q1) 2026. (See Editor’s Note below).
Multinational-dominated sectors contracted by 27.1% in Q1 2026 while Domestic sectors expanded by 0.4%.
Total Exports decreased by 7.0% in Q1 2026 (-14.5 billion), while total Imports rose by 4.2% (+€6.5 billion).
Modified Domestic Demand (MDD), a broad measure of underlying domestic activity that covers personal, government, and investment spending, grew by 0.6% in Q1 2026.
Personal spending on goods and services, a key measure of domestic economic activity, grew by 0.6% in Q1 2026.
The Balance of Payments Current Account recorded a surplus of €17.4 billion in transactions with the rest of the world in Q1 2026.
The updated estimated GDP figure for Q1 2026 is -12.1%. This compares with a Preliminary GDP Estimate for Q1 2026 of -2.0% published on 29 April 2026. Note that the updated GDP estimate for Q1 2026 of -12.1% is based on both Expenditure and Output data, while the Preliminary estimate was based predominantly on economic Output data.
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Statistician's Comment
The Central Statistics Office (CSO) has today (04 June 2026) published Quarterly National Accounts and International Accounts results for Quarter 1 (Q1) 2026, following on from the Preliminary GDP Estimate for Q1 2026 issued on 29 April 2026 (See Editor’s Note below).
Summary Results
Assistant Director General with responsibility for National Accounts & Price Statistics, Chris Sibley, said:
“In today’s release, Gross Domestic Product (GDP) is estimated to have fallen by 12.1% in January, February, and March (Q1) 2026.
The globalised Industry sector contracted by 35.0% in Q1 2026 compared with Q4 2025 while the Information & Communication sector posted a decrease of 2.0% over the same period. Overall, the multinational-dominated sector fell by 27.1% in the quarter.
However, there was continued growth in the domestic economy in Q1 2026. Modified Domestic Demand (MDD) grew by 0.6% in the quarter driven by personal spending which also increased by 0.6% while the non-multinational-dominated sector grew by 0.4% over the same period.”
Domestic Economy as measured by GDP
Looking at the results in more detail, National Accounts Statistician Justin Flannery said:
“Overall, the sectors focused on the domestic market expanded by 0.4% in Q1 2026. The Professional, Administrative & Support sector grew by 1.5% while Construction increased by 1.2%. Sectors which posted contractions included Financial & Insurance Activities (-5.6%) and Arts & Entertainment (-4.4%).
Expenditure in the Economy
Looking at expenditure in the economy, exports declined by 7.0% in Q1 2026 while Imports rose by 4.2% over the same period. As a result, net exports decreased by 39.8% in the quarter. Capital Investment rose by 13.8% or €4.3bn compared with Q4 2025 reflecting an increase in the value of physical changes in stocks. Personal spending on goods and services increased by 0.6% in Q1 2026, while Government spending on goods and services was up 0.5% over the same period.
Impact of Globalisation Activities and the Indicators of Underlying Domestic Activity
Final Domestic Demand (FDD), a measure of personal, government, and investment spending, increased by 0.1% in Q1 2026. Modified Domestic Demand, a broad measure of underlying domestic demand that excludes IPP and aircraft-related globalisation effects, rose by 0.6% in the quarter.
Compensation of Employees
Compensation of Employees (CoE), which includes wages as well other payments such as bonuses and allowances, decreased by 3.1% in Q1 2026 compared with Q4 2025.
GDP and GNP results
Overall, GDP is estimated to have fallen by 12.1% in Q1 2026. Gross National Product (GNP), a measure of economic activity that excludes the profits of multinationals, was up by 1.5% in the quarter, reflecting a 52.1% fall in factor income outflows.”