The trouble with GDP: why ‘some money is more equal than others’

The robust health of the many multinationals based here means that Ireland’s GDP does not necessarily reflect the true economic health of the average Irish household. Is there a better way – or do we benefit more by keeping things as they are?

Taoiseach Leo Varadkar and European Commission President Ursula von der Leyen meeting last year: it has emerged that the EU is using Ireland’s GDP as a reason to reduce our allocation from its €750 billion Covid-19 recovery fund. Credit: RollingNews

Back in early February, the Fine Gael press office felt the country was ready for some good news.

“It’s official: Ireland’s economy is the only economy in the EU to grow in 2020,” the party proudly declared on its Twitter account, adding an infographic which detailed how Ireland's gross domestic product (GDP) was up by 3 per cent last year.

Set against a background image of an Irish flag fluttering in the breeze beside the ...