Ireland’s GDP fell by 3.8% quarter-on-quarter in the final quarter of 2025, worse than the initial estimate of a 0.6% drop, after showing no growth in the previous period. This marked the sharpest contraction since the second quarter of 2020, weighed down by a 2.6% drop in the multinational-dominated sector, led by industry excluding construction, which fell 3.6%. On the expenditure side, growth in household consumption picked up (0.9% vs 0.4% in Q3) but slowed in government spending (0.3% vs 1.5%). Fixed investments declined by 4.6%, reversing a 13.4% increase in the third quarter. In trade, exports dropped (-3.4% vs 2.4%) more than imports (-1.3% vs 10.4%), resulting in a 9.0% fall in net exports. On a yearly basis, GDP rose by 2.2%, slowing sharply from an upwardly revised 11.2% increase in the prior quarter and marking the weakest pace of growth since a contraction in the second quarter of 2024. In 2025, Ireland’s economy expanded by 12.3%, accelerating from a 2.6% growth in 2024.