“Today’s figures confirm that, despite external headwinds, the domestic economy grew strongly last year, with Modified Domestic Demand expanding by almost 5 per cent for the year as a whole.

“While the headline figures may somewhat overstate the economy’s underlying growth, I am encouraged that consumer spending grew by a solid 3 per cent last year. This reflects rising real incomes and the strength of our labour market, with a record 2.83 million people in employment at the end of 2025.

“Encouragingly, building and construction investment also recorded robust growth, up 9 per cent last year reflecting the solid momentum in the residential sector.

“While today’s figures are positive and reflect the resilience of the Irish economy, we cannot become complacent. Indeed, recent developments clearly illustrate that uncertainty is likely to be a feature of the economic landscape for some time.

“The conflict in the Middle East is potentially a significant headwind to global growth and risk to the inflation outlook. The impact on commodity prices will, of course, hinge on the duration and extent of the disruption in supply.

“My Department is continuing to monitor international developments closely and will publish updated economic forecasts as part of the Annual Progress Report in the coming weeks.”