Three positive metrics point to health of economy

It might be the calm before the storm, but the Irish economy remains on a positive growth trajectory despite the global uncertainty.

This week, we got three bits of data testifying to the health of the economy.

First, the IDA’s half-year results pointed to an increased flow of multinational investment into Ireland in the first half of 2025.

The agency said it supported 179 investments in the six months to June with the potential to create more than 10,000 jobs, up 37 per cent on the same period last year.

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This was followed on Thursday by the latest exchequer returns for June, detailing another spike in corporation tax.

There had been concern that we might see a downturn in receipts from the business tax given the faltering global environment but, in the end, corporate tax generated €7.4 billion last month, which was €1.5 billion or 25 per cent up on the same month last year.

June is the second most important month of the year for corporate tax – behind November – accounting for 20 per cent of full-year receipts.

Minister for Finance Paschal Donohoe cautioned about the inherent volatility of the tax, while noting the Government was likely to generate another big budget surplus this year.

And then on Friday we got figures from Dublin Airport operator DAA indicating the capital’s airport had experienced its busiest-ever June with more than 3.5 million passengers travelling through the hub.

It said it would have to turn away four million passengers this year if it is to comply with the cap, which was imposed by An Bord Pleanála in 2007.

Ahead of next week’s EU-US trade talks deadline and the potential escalation of tariffs between Brussels and Washington, the Irish economy is purring. Unemployment is anchored near a historic low of 4 per cent.

All this might yet change, particularly if Trump goes after the pharma sector but, for now, that remains outside the tariff net.

How a 10 per cent blanket tariff on EU exports to the US and possibly worse for German car exports, which appears to be landing point for negotiations at this stage, will play out is something of an unknown.