Preliminary estimates showed Ireland’s strongest quarterly expansion since Q1 2025, driven by multinational-heavy information and communication activity and contributing to stronger-than-expected 0.4% eurozone growth.
Ireland’s economy grew 3.9% quarter-on-quarter in the second quarter of 2026, reversing a 7.0% contraction in the prior quarter and ending a two-quarter downturn, according to preliminary estimates. The rebound was the strongest quarterly expansion since Q1 2025 and was driven mainly by the multinational-dominated information and communication sector, a key source of volatility in Irish headline GDP. On an annual basis, Ireland’s GDP still fell 1.6% in Q2, improving from a 13% drop in Q1 and marking a third straight quarter of year-on-year contraction. Ireland’s sharp rebound also helped lift eurozone GDP, with Eurostat reporting 0.4% quarterly growth for the 21-nation currency bloc, above the 0.2% forecast in a Reuters poll.