Ireland’s national economy entered a technical recession at the end of 2022, data from the Central Statistics Office (CSO) shows, writes The Journal on March 3.
A technical recession is when a country’s economy falls for two consecutive quarters. Modified domestic demand (MDD) fell 1.1% in the third quarter and 1.3% in the fourth. Overall, the MDD increased 8.2% for the year, beating the Treasury Department forecast of 7.7% budgeted for 2022.
It should be noted that the gross domestic product (GDP) grew by 12% in the year. The GNP increased by 6.7%.
Modified domestic demand is used in Ireland to remove the impact of corporation tax revenue on large multinational companies (MNCs). Many of these corporations have their European offices in little Ireland due to the low corporate tax rate.
Likewise, to exclude this influence, the gross national product (GNP) is used, from which, unlike the gross domestic product, the contribution of TNCs is excluded. Typically in European countries the discrepancies in these indicators are in the region of 2%, but in Ireland by 2021 GDP was 32% higher than GDP.
One of the main sectors of TNCs is pharmaceuticals. In 2022, it produced and exported products worth 134 billion euros (10.5 trillion rubles).
Some 300,000 people work in the TNC sector in Ireland. Recall that the total population of the country is 5.1 million people.
Source: Rossa Primavera
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