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Friday, September 09, 2005

Comments

Edward Hugh

Well it's not only the UN that has done this, Eurostat too could be counted in the club. Probably this is pretty standard practice and it is only the relatively anomalous situation of Ireland that has lead to the controversy (the UK of course has the issue but the other way round).

The bottom line though is surely that Ireland has enjoyed extraordinary economic success in recent years, as I discuss in my post 'Europe's Tiger'.

Edward Hugh

Similar issues also arise in a different way with Luxembourg (which often heads many of the lists).

"The high level of GDP per capita in Luxembourg is partly due to the large share of cross-border workers in total employment. While contributing to GDP, they are not taken into consideration as part of the resident population which is used to calculate GDP per capita."

In this case it is not multinational corporations, but migrant workers who produce the distortion. In fairness, at the end of the day, as I'm indicating, it may be a little unjust to single out the UN here. Take a good look at the OECD and the IMF first.

Mark T

Years ago doing country risk analysis for a UK clearing bank, we always considered the GNP rather than GDP stats for this exact reason. Seems like a few basiscs have been forgotten!

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In other words, while Ireland produces a lot of income per inhabitant, GNI shows that less of it stays in the country than GDP might suggest.

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