Irish GDP since independence

Abstract

This paper constructs annual gross domestic product (GDP) estimates for Ireland (1924–47) to join the first complete official aggregates. The new series is deployed to revisit Ireland's economic performance in the post-independence decades. Ireland's economy grew at just under 1.5 per cent per annum and average living standards improved by 40 per cent. The bulk of this was due to labour productivity improvements. Starting in 1924 captures the civil war recovery and paints a more positive picture of the 1920s, whilst the traditional narrative of a ‛mild’ Great Depression is upheld. The 1930s recovery was aided by strong contributions from services and industry, whilst the economy contracted by almost 7 per cent during the ‛Emergency’. Though supporting O'Rourke's view that Irish growth was not unique against European peers, the new data provide evidence of stronger convergence against UK regions. Industry contributed most to growth during the period, growing at 3.6 per cent per annum. The equivalent rate for services was 1.3 per cent, though it contributed substantially during recovery periods. Agricultural output hardly changed due to its post-war contraction. This paper joins a growing number of studies that suggest that Ireland was poorer at independence than previously believed.