Shock study finds Ireland is the world's second richest country with £80k per person
Ireland's tax laws and qualified workers has attracted foreign investments, driving economic growth.
A new study has identified Ireland as the second richest country globally, with a staggering adult per capita income of £80,566.62. This finding comes as a shock to many, given the country's tumultuous economic history and ongoing challenges.
Ireland, a small nation with a population of just 5.3 million, was severely impacted by the 2008-2009 financial crisis. The country faced deep economic woes, leading to severe austerity measures, including significant cuts to public-sector wages and a complete overhaul of its banking system.
However, through these politically difficult reforms, Ireland not only managed to stabilize its economy but also propelled itself to remarkable economic growth.
The nation’s rapid recovery and subsequent economic boom can be attributed to several factors. Ireland has established itself as one of the world's most open and business-friendly economies, according to magazine Global Finance, boasting one of the fastest growth rates in Europe.
A key driver of this growth has been the country’s success in attracting foreign direct investment (FDI), particularly from the United States. Approximately 1,000 US subsidiaries, including tech giants like Apple, Google, Microsoft, and Meta, have set up operations in Ireland, lured by the country’s highly skilled, English-speaking workforce, pro-business environment, and a favorable corporate tax rate of just 12.5 percent.
These multinational corporations have had a profound impact on Ireland's economy. By 2023, these firms accounted for over 50 percent of the total value added to the Irish economy, significantly inflating the country's GDP.
Ireland's strategic location, offering a gateway between the US, Canada, Europe, and Asia, further enhances its global economic connectivity, making it an attractive destination for business.
However, while the average adult per capita income of over £80,000 might suggest that the average Irish citizen is among the wealthiest globally, the reality is more complex. Ireland's status as a leading corporate tax haven has disproportionately benefited multinationals, with the average Irish household seeing far less of this prosperity.
According to OECD data, national household per-capita disposable income in Ireland remains slightly below the EU average. Moreover, there is a considerable income disparity within the country, with the wealthiest 20 percent of the population earning nearly five times more than the poorest 20 percent.
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Despite its impressive economic performance, Ireland faces significant challenges. The country's heavy reliance on exports makes it vulnerable to shifts in global economic conditions, geopolitical tensions, and energy price fluctuations.
Additionally, an aging population and inadequate public infrastructure pose long-term risks to sustained growth.
As discussions around global tax reforms continue, particularly the OECD’s proposed minimum corporate tax rate of 15 percent, there is growing concern that Ireland could lose its competitive edge.
If adopted, such changes could diminish the influx of multinationals that have been crucial to Ireland's economic success.
