Irish economy falls sharply in first quarter; unemployment up in May

Ireland’s economy contracted markedly in the first quarter of 2026, data published by the Central Statistics Office showed Thursday.

At constant prices, gross domestic product declined by 13.2% on-quarter in the first quarter, worsening from a 6.6% contraction in the fourth quarter of 2025.

CSO noted that the industry sector, excluding construction, contracted by 35% on-quarter. Construction was up by 1.2%.

On-year, Ireland’s economy fell by 17.1% in the first quarter, a sharp deterioration from a 2.2% fall in the fourth quarter.

Meanwhile, the country’s unemployment rate ticked up to 4.9% in May from 4.8% in April.

Female unemployment increased to 5.3% in May from 5.2% in April, while male unemployment remained unchanged at 4.5%.

Youth unemployment for those aged 15 to 24 ticked up to 9.9% in May from 9.8% in April.

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