Despite all indicators pointing towards an improving economy over the past year, there is no simple way of measuring that progress due to the distortive effects of a number of large industries and definitional changes.
One of the country’s most respected economists and ESRI research affiliate, John Fitzgerald, is due to make the claim as part of a wider report released next week.
Prof Fitzgerald argues that relatively new developments such as the impact of the pharma patent cliff have had major implications for the interpretation of the Irish national accounts.
The inclusion in the national accounts later this year of aircraft leasing activities which will see purchases of aircraft in the sector booked under imports on a comprehensive basis will further complicate the situation.
Finally, the activity of a small number of firms re-domiciled here is also distorting the figures for Gross National Product (GNP) and the current account of the balance of payments.
Consequently, GDP is a defective indicator while GNP — although superior — is also imperfect.
A new method of evaluating growth which focuses on identifying the GNP of individual sectors should be adopted, Prof Fitzgerald added.
Article Source: http://tinyurl.com/kbwqb42
- Higher costs for air fares and restaurant prices sees inflation rate rise
- Petrol prices plunge but the taxman takes 64pc
- Charlie Weston: ‘Escape the banking ‘confusopoly’ and get yourself a better mortgage rate this year’
- Lower property tax for homes of rich: minister
- Chinese firms’ investment in Ireland surges by 200pc to €87m
- 21 Belvedere Place, Dublin 1
- +353 1 855 4188
- +353 1 836 6550
- 16 Jan 2019Higher costs for air fares and restaurant prices sees inflation rate rise
- 16 Jan 2019Petrol prices plunge but the taxman takes 64pc
- 16 Jan 2019Charlie Weston: ‘Escape the banking ‘confusopoly’ and get yourself a better mortgage rate this year’
- 15 Jan 2019Lower property tax for homes of rich: minister
- 15 Jan 2019Chinese firms’ investment in Ireland surges by 200pc to €87m