Irish economy grows 26%

mwpt

http://www.bloomberg.com/news/articles/2016-07-12/ireland-s-economy-grows-26-as-u-s-companies-chase-lower-taxes

Ireland’s economy expanded by more than a quarter last year as companies moved their tax address to the island nation.
Gross domestic product rose 26.3 percent, compared with a previously reported 7.8 percent, the Central Statistics Office said on Tuesday. The revisions are partly linked to firms inverting to have an Irish base, it said. The economy grew an annual 2.3 percent in the first quarter. Economists had predicted GDP growth of 7.3 percent, according to the median estimate in a Bloomberg survey.

Obviously huge caveats here but two points to note:

* Ireland is in the EU and in the Euro.
* Ireland undertook austerity, which according to some left wing economists (and armchair pundits on this site) is always the wrong approach to take in a downturn.

Thrugelmir

Other than Gross Domestic Product. What does GDP actually mean? Worth reflecting that it's still the man on the street that's carrying the can. Politicians spin in the absence of a real policy.

michaels

You missed point 3: Ireland has a corporation tax rate of 12.5% much lower than any major economy.

I suspect this might have some bearing on the fact that many firms diecided to make their corporate earnings there even if it doesn't fit with your paradigm?

mwpt

michaels wrote: »

You missed point 3: Ireland has a corporation tax rate of 12.5% much lower than any major economy.

I suspect this might have some bearing on the fact that many firms diecided to make their corporate earnings there even if it doesn't fit with your paradigm?

I didn't miss that point at all.

Thrugelmir

michaels wrote: »

You missed point 3: Ireland has a corporation tax rate of 12.5% much lower than any major economy.

That's why I said.

it's still the man on the street that's carrying the can

There's no personal tax allowance. From €1 upwards income tax is paid. Might as well move to the UK.

mrginge

mwpt wrote: »

http://www.bloomberg.com/news/articles/2016-07-12/ireland-s-economy-grows-26-as-u-s-companies-chase-lower-taxes



Obviously huge caveats here but two points to note:

* Ireland is in the EU and in the Euro.
* Ireland undertook austerity, which according to some left wing economists (and armchair pundits on this site) is always the wrong approach to take in a downturn.

I believe that Greece is also in the EU and undertook austerity.

Thrugelmir

mrginge wrote: »

I believe that Greece is also in the EU and undertook austerity.

Hasn't the UK?

Malthusian

Don't forget the injection of talent and intellectual capital as the socially enlightened post-identity citizens of the UK flee the racist hellhole of Brexit Britain for the sanctuary of Ireland. Clearly it's happening even quicker than anyone could have anticipated.

CLAPTON

I've just phoned round a few friends in Ireland and asked them about their 25% increase in income
strangely all of them seemed perplexed.

where exactly is this 25% increase in goods and services actually going?

TrickyTree83

Malthusian wrote: »

Don't forget the injection of talent and intellectual capital as the socially enlightened post-identity citizens of the UK flee the racist hellhole of Brexit Britain for the sanctuary of Ireland. Clearly it's happening even quicker than anyone could have anticipated.

Yes, this hell hole where the banks aren't about to collapse into their own footprint of debt and take the rest of their country with it (see Italy, to some extent Germany).

Then when Ireland needs to bailout Italian and German banks due to membership of the Euro perhaps it won't look so rosy.

JoeCrystal

Thrugelmir wrote: »

There's no personal tax allowance. From €1 upwards income tax is paid. Might as well move to the UK.

Interesting! I wonder how much higher the the HMRC revenue would be if they abolish Personal Allowance in this country.