Economic overview of Ireland and Northern Ireland published

The Economic and Social Research Institute (ESRI) recently published its report Economic Overview of Ireland and Northern Ireland which provides a high-level comparison of the economies of Ireland and Northern Ireland (NI) over recent years. The report outlines similarities and differences between the two economies in terms of economic growth, labour market trends, living standards, education, health, general well-being and economic structures.

The report highlights, that over recent years, the disparity in economic performance and well-being indicators between Ireland and NI is widening with the economy in Ireland displaying stronger economic growth and higher wages and living standards.

Some of the key findings in the report are as follows:

• Ireland's population is growing faster than NIs, largely due to strong net migration in recent years. This has resulted in Ireland having a younger population, with a lower old-age dependency rate.
• There have been shifts in the labour market over time.  Labour market participation in Ireland has increased significantly since 2010, widening the gap with NI.  In 2022, the participation rate of those aged 16-64 was 76.8 percent in Ireland compared to 72.4 percent in NI. Employment rates in Ireland overtook NI in the period after the financial crisis, reflecting Ireland’s strong recovery.
• Ireland’s modified gross national income per capita in 2022 was 57 percent higher than NI’s gross domestic product per capita, reflecting stronger economic growth.
• In terms of wages, the data show a positive gap favouring Ireland, with hourly earnings 36 per cent higher than in NI in 2022.
• While Great Britain (GB) remains NI’s largest trading partner, NI’s trade with GB has declined since 2015, while trade with Ireland has increased.
• On a per capita basis, NI residents pay significantly lower personal income tax than those in Ireland (€2,980 in NI vs. €6,725 per capita in Ireland).
• Corporate tax receipts per capita in Ireland (€5,760) are over five times those in NI (€1,018), reflecting the dominance of multinationals.