Dublin Economic Monitor

The disruption and uncertainty caused by the war in the Middle East acted to limit growth in Dublin’s private sector during the second quarter of 2026, although a slower expansion in output in Q2 likely reflects some payback from a particularly strong opening to the year. Companies did manage to keep raising business activity during the quarter, but weakness in construction and a lack of new order growth sound a note of caution going into the second half of the year. Companies will be hoping that a more stable geopolitical environment will help growth to regain momentum.

The latest Dublin Economic Monitor shows that economic momentum in the Capital remained positive in early 2026. Business activity strengthened sharply in Q1, recording its strongest reading since 2022, while retail spending, tourism activity and housing commencements all increased further. It is also encouraging to see a recovery in inward investment activity during the quarter, with both FDI capital investment and job creation increasing. At the same time, the data points to some easing in labour market conditions, with unemployment rising and hiring activity softening. Nonetheless, the broader outlook for Dublin’s economy remains positive.