Ireland will have highest GDP growth in EU in 2025

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Ireland will have the highest GDP growth in the European Union this year, 10.7 per cent, leaving the government with a fourth year of surplus, at 10.25 billion euros. Dr Nicholas…

Ireland will have the highest GDP growth in the European Union this year, 10.7 per cent, leaving the government with a fourth year of surplus, at 10.25 billion euros.

Dr Nicholas O’Brien, the country’s ambassador to China, described the economic picture at a Christmas lunch of the Irish Chamber of Commerce in Hong Kong on Thursday.

He preferred to use another measure of growth, Gross National Income star, which will reach 3.3 per cent this year. This excludes the substantial taxes paid by multinational companies based in Ireland.

In a forecast in mid-November, the European Commission said that Ireland’s GDP “would grow exceptionally by 10.7 per cent, largely due to strong export activity in the first year of the year.” That is eight times the EU average.

In the first half, “real GDP increased by 18.5 per cent, driven by pharmaceutical exports to the U.S., likely reflecting front-loading in anticipation of U.S. tariffs. The domestic economy also performed robustly, supported by strong private consumption and growth in modified investment,” the Commission said.

“Ireland's general government budget is set to register a surplus of 1.5 per cent in 2025, strongly supported by a buoyant growth in corporate tax revenues. The revenue from other tax categories has also proved resilient in the first half of the year, reflecting continued growth in the Irish economic activity despite a slowing global environment.,” it said.

O’Brien said that the government surplus was the envy of countries across Europe. The surpluses heavily depend on taxes from a small number of large multinational corporations, primarily in tech and pharma.

“In an unpredictable world, we offer stability and certainty, in fiscal and taxation policy,” he said. “EU membership is central to our policy, as is our education system. But we do not take it for granted. We want an open, rules-based trading system. We must be adaptable and seek new markets in Asia.”

China is Ireland’s largest trading partner in Asia.

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