Gross domestic product, the standard measure of economic growth that counts in activities of multinationals, expanded at just over half that rate, at 2.6pc.
Multinational-dominated sectors of the economy expanded by just 1.5pc in 2024 and accounted for 47pc of total value added in the economy.
The globalised ‘Industry sector’ contracted by 0.5pc in 2024 compared with 2023, a second consecutive year of contraction in the sector. The Information & Communication sector, which incudes multinational tech giants, continued to grow increasing by 6.2pc in the year.
There was a sharp contraction in capital investment of 29.5pc reflecting the lowest level of investment in Intangible Assets, things like corporate intellectual property, since 2014.
In contrast, parts of the economy that are heavily skewed towards domestic spending grew more rapidly: including the Financial & Insurance sector which expanded by 16.1pc and Real Estate which increased by 6pc. The only domestic dominated sector to contract was Arts & Entertainment which fell by 5.8pc in the year.
Government spending on goods and services increased by 5.3pc while personal spending on goods and services (the PCE indicator) rose by 2.9pc
Modified Domestic Demand (MDD), a measure of underlying domestic activity that covers personal, government and investment spending, rose by 1.8pc in 2024.
Domestic-dominated sectors of the economy expanded by 3.6pc in 2024 while multinational-dominated sectors increased by 1.5pc, the reverse of the long term trend since the global financial crash when investment by multi-nationals has been the key growth driver.
The tally for the first three months of 2025, however, shows GDP growing much faster (7.4pc) than modified domestic demand (2pc). The surge in GDP reflects record levels of exports to the US this year which are at least in part understood to reflect a rush to ship products ahead of higher tariffs threatened by US President Donald Trump.
The Minister for Finance, Paschal Donohoe, said the CSO figures confirm robust growth in the domestic economy last year but warned it comes ahead of a period of uncertainty.
“Looking ahead, we are facing into a period of considerable uncertainty in the global economic environment relating to the introduction of tariffs and the rise in geo-fragmentation. Given the globally integrated nature of the Irish economy, this uncertainty will act as a headwind to Irish growth.
“From a policy perspective, we need to continue to calibrate economic and budgetary policies that recognise the changed external backdrop. In particular, this means focusing on boosting the competitiveness of the economy and continuing to build up our fiscal buffers. The Government will set out its updated strategy in the Summer Economic Statement later this month. “
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