Euro Zone Economy Grows 0.2% in Q4, Driven by Irish Multinationals

Ireland's economy showed surprising resilience in 2024, with GDP growing by 1.2%, a significant revision from earlier estimates of only 0.3%. The growth was supported by a strong increase in modified domestic demand (MDD), which rose by 2.7%, reflecting improvements in personal spending and wages. Despite a contraction in the multinational sector, particularly pharmaceuticals, domestic sectors thrived, showcasing robust employment with 2.8 million people working. Finance Minister Paschal Donohoe acknowledged the healthy position of the domestic economy but warned of increasing uncertainty due to global economic fragmentation, particularly concerning trade relations with the U.S. The fourth quarter of 2024 also reported a notable 3.6% growth, defying previous forecasts of a contraction, boosted by strong performances in industry and services. This positive trend, however, remains vulnerable to external economic pressures.