Economic and Investment Outlook

Underlying economy above EA average MNCs add real substance to IE economy as wage bill filters out to domestic sectors Ireland's income = wages (all sectors) + domestic sectors profits + tax on MNC profits Ireland, on an underlying basis, growing faster than euro area average in recent years (2008 = 100) 300 250 200 Compensation of Employees 150 MNC Gross 25% 100 Operating Surplus (Profits) 52% 50 Domestic 0 ୮ Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta National Treasury Management Agency Gross Operating Surplus (Profits) 23% 1995 1997 1999 2001 2003 2005 2007 MNC Sector Profits Compensation of Employee Real GVA EA19 Source: CSO, NTMA calculations (Nominal 2022 data used in left chart) 2009 2011 Domestic Sector Profits Real GVA ex. MNC Profits Ireland's GVA data has been adjusted to strip out the distortionary effects of some of the multinational activity that occurs in Ireland. Specifically a profit proxy is estimated for the sectors in which MNCs dominate. 57 44

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