DAVY VIEW

National accounts for Q1 and exchequer returns for May were published yesterday (Thursday June 5th). A surge in gross domestic product (GDP) and investment took place amid a huge increase in exports of pharmaceuticals to the US. Taken together, these developments could imply upside to corporation tax receipts – notwithstanding further volatility in May when receipts declined (mainly due to one-off receipts last year which were not repeated). While most indicators are consistent with a robust start to 2025 for the Irish economy, tax data in April and May could signal that uncertainty has caused a slowdown in economic growth in Q2.