The Central Statistics Office have confirmed that the Irish economy blew apart all manner of expectations in 2020.
The Gross Domestic Product grew on the back of the strong performance of the multinational sector and minor contraction in domestic demand due to aggressive government support.
Ireland experienced the fastest GDP growth in the developed world last year, confirmed by the CSO today.
Even after falling by 5.1% quarter on quarter in the fourth quarter, GDP grew by 3.3% in 2020, buoyed by a robust contribution from the multinational-dominated sectors of pharma and ICT.
The foreign-owned sector now accounts for more than 50% of total GVA, up from 25% in 2014. In a year of domestic lockdowns, Ireland benefited from its world-leading positions in hosting the so-called largest companies in sectors that are considered the beneficiaries of the pandemic – pharma & IT.
Wages were effectively flat in 2020, although there were huge variations across sectors. Wages in the manufacturing sector grew (2.4%).
This growth occurred through a combination of increases in both wage levels and employment, with multinationals playing a pivotal role, helping to bolster tax revenues.
According to Goodbody Stockbrokers, “It is worth noting that after the initial shock of the pandemic, the economy coped better throughout the rest of the year partly due to the very important contribution from government fiscal measures.”