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Ireland GDP per capita is among the highest in the OECD, though this is partly due to the activities of multinational enterprises (MNEs) upwardly influencing GDP. Excluding these activities, GDP per capita was still above the average of the upper half of OECD countries. Strong post-crisis labour productivity growth has largely relied on MNEs. Both employment and working hours have recovered in recent years but remain below the pre-crisis level. Inequality in household disposable income is below the OECD average. Ireland’s income redistribution system reduces market income inequality by the largest margin in the OECD, essentially through welltargeted social benefits in particular toward the poorest of the population. Greenhouse gas emissions per capita remain well above the OECD average. Good progress has been achieved on all 2017 priorities. Notably, the Integrated Licence Application Service reduces significantly the complexity of regulatory procedures. The Legal Services Regulation Act, if fully implemented, will enhance competition and increase transparency in legal services. Fostering innovation and removing barriers to entrepreneurship and competition would encourage a more dynamic and cost-competitive domestic business sector, making economic growth more sustainable. Enhancing activation policies and revamping the welfare and tax system to get more people back to work would help both employment growth and social cohesion. Growth performance, inequality and environment indicators: Ireland C. GDP per capita is among the highest in the OECD
A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio
2002-08 1.2 0.7 0.9 -0.4 0.1 0.4 1.3 -0.9 0.1
2012-18 7.7 2.5 0.5 1.8 0.1 5.4 3.0 2.4 -0.3
GHG emissions per capita4 (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)
GDP per capita
40
GDP per hour worked
30 20 10
B. Inequality and environment
Gini coefficient3 Share of national disposable income held by the poorest 20%
Gap to the upper half of OECD countries5 Per cent 50
Level
Annual variation (percentage points)
2015 29.7 (31.7)*
2013-15 -0.5 (0)*
8.4 (7.6)*
0.1 (0)*
2016 14 (10.9)* 0.2 (0.3)* 0.1
Average of levels 2010-16 13.8 (11.3)* 0.3 (0.3)* 0.1
0 -10 -20 -30 -40
Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933955028