Ireland’s economy staged a sharp turnaround in the second quarter of 2026, with gross domestic product (GDP) growing 3.9% quarter-over-quarter, following a steep 7.0% contraction in the first quarter of the year.
The latest data, updated on 29 July 2026, show a clear reversal in momentum. The previous reading, for the first quarter of 2026, reflected a 7.0% decline compared with the final quarter of 2025, highlighting the depth of the earlier slowdown. By contrast, the second-quarter reading measures a 3.9% expansion versus the first quarter, signaling a marked recovery in activity.
On a quarter-over-quarter basis, the shift from a negative 7.0% to positive 3.9% suggests that some of the pressures weighing on the Irish economy at the start of 2026 have eased. While the figures do not specify the underlying drivers, the move back into positive territory underscores improving conditions after a notably weak start to the year.
