GDP 'may have risen in first quarter'

The tax is part of it… as well as the Grants from IDA… and anyone can’t do it, that I’ll guarantee you.

Not everyone can do it but lots of people can and are doing it elsewhere. India in particular.It really isn’t as specialised as you might think.
Originally the pharma companies may not have been here just for the tax but that’s the only reason they are here now.
Didn’t the guy from Intel say as much when talking about his particular sector too.

No they can’t.

There are multiple reasons why the worlds largest Biopharma is in Ireland, tax/ grants are not high on the list, although welcome.

The issue with GDP is we are counting income of multinational companies as our own, when it fact this has nothing to do with us, most of the transfer pricing is repatriated to the company stakeholders in countries other than Ireland, we just charge them rent (12.5% corporate tax allegedly ) for the use of Ireland as a tax shelter. So while GDP may be rising due to the activities of the multinationals (which dominate exports), none of the benefits accrue to Ireland as domestic producers are being shackled by the bailout of the banks and rising cost of government.

Don’t believe recovery hype → davidmcwilliams.ie/2010/01/3 … overy-hype

The issue with GDP is we are counting income of multinational companies as our own, when it fact this has nothing to do with us, most of the transfer pricing is repatriated to the company stakeholders in countries other than Ireland, we just charge them rent (12.5% corporate tax allegedly ) for the use of Ireland as a tax shelter. So while GDP may be rising due to the activities of the multinationals (which dominate exports), none of the benefits accrue to Ireland as domestic producers are being shackled by the bailout of the banks and rising cost of government.

You are honestly contending that the FDI’s cause no economic benefit to this country?

So if our GDP was €170bn last year what should it be?

No, I am contending that Dan McLaughlin is spoofing (yet again), he is claiming GDP will increase 1% this year, driven by exports. As far as I can see those exports are coming from the multinationals and we are counting this as our income and borrowing against it!!

Irish GDP is 20% larger than GNP because of the importance of multinationals in the Irish economy.

Yes, but they are all measured in GNP. Including the corporate tax bit. GDP is GNP + the bits that don’t apply to us - the multinational profits that leave the country. GNP measures the effect of taxation and of salaries. GNP is projected to fall this year.

From Dr. Dan’s intro:

bankofireland.ie/html/gws/in … pril10.pdf

You may think that people are being unduly gloomy, but bandying about “jobs always lag recoveries” is unhelpful. Who wants to live in a jobless recovery? Who even calls it recovery? Economists? Whoopdedoo. And would most economists call an expansion of GDP with a decline of GNP growth? I doubt it.

Thanks Yogan, but GDP is probably the only universal measurement available, every western economy uses it as does OECD,IMF,ECB,FED to name a few.

I appreciate its not accurate as the amount of assumptions used to come up with the figure, but the same assumptions are made for GNP.

I also question the universal 20% deduction due to Multinationals, its being around for a long time now without change, there is no way our economy is the same size as it was say in 1995.

My working life has been in multinationals and we have repatriated funds (not necessarily profits) some make losses also, but we never just sat down and sent a blanket 20% back, we would run cashflow forecasts to include capital expenditure, and if there was money left we’d send it, but usually we’d hang onto it, in long term deposits to name one place.

To me its easy just to cut 20% off GDP to get GNP without thought.

Ah ha ha ha!!! That is classic!!!

You have the cart before the horse bob - the multinationals don’t take 20% off, the 20% is calculated as the difference between GDP and GNP, it is the result not the plan. It is an observable result.

20% is calculated by who?, and yes I know that the Multinationals don’t take 20% off, but their contribution to the economy is automatically reduced by everyone, I’m not denying repats of profits take place and it will reduce GDP, but by 20%, is my question.

You might as well question all the other figures. I don’t know and I don’t much care. Everyone else has a method for this calculation that they seem happy with within the limitations of GDP/GNP. Perhaps Mr. Google might be able to help you?

Looks like the view is spreading, only this time its Davy, and they are saying GNP.

It will be interesting to see in the future who was correct, there seems to be alot of guessing going on.

davy.ie/Generic?page=MorningNews1

It seems to be just about the reclassification of the Anglo debt? Do you have a link to one that talks about GNP?

OOPs you know my linking prowess is shyte I tried to copy and paste the address but clearly that didnt work.

Its Rossa White’s Morning Briefing, first on the list.

Sorry about that. :-GC