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The Irish are the second richest in the EU in 2021

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The Irish were the second richest in the EU after Luxembourgers in 2021.

Figures from the bloc’s statistics office, Eurostat, show that gross domestic product (GDP) per capita, measured in purchasing power standards, was 121 percent above the EU average here last year.

While Eurostat adjusts for price differences between countries, Ireland’s GDP figures are skewed by the fact that it is home to a large number of multinational companies.

The government prefers to use modified domestic demand as a measure of output, which excludes volatile patent and aircraft leasing transactions and gives a more complete picture of the domestic economy.

“The high GDP per capita in Ireland can be partly explained by the presence of large multinational companies owning intellectual property,” Eurostat said today.

“The associated contract manufacturing using these assets contributes to GDP, while a large part of the revenue from this production is returned to the ultimate owners of the companies abroad.”

Luxembourg’s GDP per capita was 177% above the EU average. A large number of foreign nationals work in Luxembourg but reside abroad, inflating GDP data.

Denmark was third on the EU rich list, with a GDP per capita that was 33 percent above the EU average. The Netherlands (32 percent above), Sweden (23 percent) and Belgium (22 percent) were next on the table.

Bulgaria had the lowest GDP per capita in the EU last year (45 percent down), followed by Greece (35 percent), Slovakia (32 percent) and Croatia (30 percent).

Ireland was the only EU country to record steady GDP growth during the pandemic and is still one of the bloc’s fastest-growing economies.

Thanks to strong growth, prices in Ireland started to rise faster than the rest of the EU last year, although they are now in line with the EU average.

Irish inflation in February was 5.7 percent according to the EU’s harmonized index (5.6 percent according to Ireland’s consumer price index), while inflation in the 19 euro-zone member countries was 5.9 percent. In the EU of 27 it was 6.2 percent.

Price increases in Ireland could peak at around 8.5 percent this summer, according to new forecasts from the Economic and Social Research Institute (ESRI). The think tank also forecasts slightly slower but still strong GDP growth of 6.2 percent, while MDD is expected to grow by 5 percent.

https://www.independent.ie/business/irish/irish-people-second-richest-in-eu-in-2021-41478353.html The Irish are the second richest in the EU in 2021

Fry Electronics Team

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