The scale of Irish contract manufacturing, whereby a company based in Ireland engages a firm abroad to manufacture products on its behalf, has grown enormously since 2015.
Industrial production data for April show that Irish GDP is already on course to rebound in Q2. Manufacturing output fell by 45% in March, causing the marked decline in GDP.
In this regard, the Q1 National Accounts show that modified final domestic demand grew by 2.7% in the quarter to leave it 5.5% higher on a year-on-year basis.
Thus, the economy is continuing to perform strongly. That said, the pace of growth is slowing down.
