Minister Donohoe welcomes data confirming the domestic economy grew solidly last year

Modified Domestic Demand – a proxy for the domestic economy – grew by 2.7 per cent in 2024
Modified Domestic Demand fell by 1.1 per cent relative to the previous quarter but was up 1.3 per cent on an annual basis in the fourth quarter
consumer spending grew at a solid pace of 2.3 per cent last year and was up 1.6 per cent in Q4 2024
GDP grew by 3.6 per cent in the fourth quarter and increased by 9.2 per cent on an annual basis

The Central Statistics Office today (6 March) published the Quarterly National Accounts for the fourth quarter of 2024.

Commenting on the figures, the Minister for Finance Paschal Donohoe said:

“Today’s figures confirm that, despite a contraction in the final quarter, the domestic economy grew at a solid pace last year, with Modified Domestic Demand increasing by 2.7 per cent for the year as a whole, marginally ahead of my department’s forecast of 2.5 per cent. The growth in the domestic economy is consistent with the strength of our labour market – with a record 2.8 million people in employment last year.

“Alongside the exchequer returns published yesterday, today’s figures illustrate the relatively healthy aggregate position of the domestic economy.

“The external outlook, however, has become increasingly uncertain in recent months against a backdrop of increasing global fragmentation. As a major beneficiary of global economic integration, the Irish economy is exposed to the reversals currently underway.

“From a government perspective, the policy response will focus on controlling the ‘controllables’, in other words, we are focusing on what we can directly influence. This means continuing to improve resilience, competitiveness and productivity. We will do so by continuing to address major infrastructural bottlenecks in key strategic areas, as well as investing in skills and training.

“A key priority is to build up our buffers so that we can continue to provide for our people if challenges materialise, if and when the next economic shock occurs."

Notes

Modified (final) domestic demand, a proxy for the domestic economy, is the sum of personal and government consumption and investment, excluding investment in imported IP and aircraft for leasing. It also excludes changes in the value of stocks.