Ireland seems to have overcome a technical recession, with the tech sector bouncing back and aiding in the overall economic growth in the first quarter of the year. Initial figures from the Central Statistics Office (CSO) indicate that the economy, measured by the gross domestic product (GDP) standard, expanded by 1.1% in the first three months of 2024 compared to the previous quarter.
The recent growth will partially offset a decline that saw GDP decrease by 3.4% in the last three months of 2023 compared to the same period in the previous year. According to the CSO, this rebound was primarily driven by an increase in the Information & Communication sector.
Previously, the CSO estimated that GDP for the entire previous year fell by 1.9% compared to 2022. Despite the recent indication of recovery, GDP is still estimated to have decreased by 0.8% compared to the same quarter of 2023.
Last year, Ireland officially entered a recession due to fluctuations in the multinational-dominated and highly globalized sectors of the economy. However, a robust job market and the resilience of the domestic economy meant that few people noticed what essentially amounted to a technical issue.
The downturn was primarily attributed to declines in the pharmaceutical and tech sectors, where exports had been decreasing throughout the year.
Last year, adjusted domestic demand, which excludes items such as patents held by multinational branches and aircraft leasing, experienced growth.
Discussing the recent estimates, Enda Behan, a Statistician in the CSO National Accounts Data Collection and Quality Division, noted that the resurgence in overall growth was propelled by an expansion in the Information & Communication sector, which is predominantly influenced by multinational entities, in the first quarter of 2024.
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