The Irish economy grew by over 3 per cent in the first quarter as multinationals stockpiled produce in the US ahead of the imposition of tariffs.
A preliminary estimate by the Central Statistics Office (CSO) indicated the economy, as measured by gross domestic product (GDP), expanded by 3.2 per cent in January, February and March compared with the previous quarter.
“The result was driven mainly by a rise in the multinational dominated sectors in Q1 2025 with a more modest increase in the domestic economy,” the CSO said.
The latest trade figures show the value of exports to the US increased by €8.7 billion (210.5 per cent) in February as exporting firms here rushed to get product in ahead of the tariff deadline.
Goods imported from all countries into the US have, from April 5th, been subject to a 10 per cent tariff. US President Donald Trump has put a stay on a possible 20 per cent tariff on all EU imports.
Washington’s protectionist pivot clouded the economic outlook. The International Monetary Fund (IMF) last week downgraded its forecast for global, US and euro zone growth amid the fallout from tariffs and the US’s trade war with China.
Separately, US consumer confidence fell in April to an almost five-year low on growing pessimism about prospects for the economy and labor market due to tariffs.
The conference board’s gauge of confidence fell by eight points to 86, the weakest since May 2020, data released Tuesday showed.
It marked the fifth straight monthly decline, the longest such stretch since 2008. The median estimate in a Bloomberg survey of economists called for a reading of 88.
A measure of consumer expectations for the next six months plunged to the lowest level since 2011, while a gauge of present conditions also fell.
The conference board’s data are consistent with the University of Michigan’s survey and illustrate growing consumer apprehension that higher duties on foreign goods will damage the economy and job market, while pushing up prices.
Additional reporting by Bloomberg
