As official figures show that Ireland's economy shrank in the first three months of this year, it is hoped that the era of the little demon economy has ended, although there is evidence that employment growth is strong and taxes have increased.
This is a newly created economic measurement tool that suggests that the economy is smaller than the calculation based on a more standard measurement
Impact on debt and expenditure levels.
Central Bureau of Statistics (CSO)
Yesterday's data showed the economy shrinking.
Six PCs in the first three months of this year-
Gross domestic product by standard (GDP)measure.
This has made Ireland the worst performing economy in Europe. However, year-on-
Officials and analysts say growth is still strong this year, and the surprising decline is driven by the distortions caused by multinational companies moving assets to Ireland at the end of 2016, which this year did not
"The multinational sector once again adds huge volatility to Ireland's notorious unstable GDP data," said Conall Mac Coille, chief economist at Davy . ".
In a note to investors, he said that the annual 6pc GDP growth rate announced by CSO better reflects the economy, in line with employment and industrial growth.
All of this highlights the ongoing challenge of accurately tracking economic activity here.
Last year, Ireland made headlines around the world, when GDP data showed that the economy grew by 26 pc in 2015, prompting Paul Krugman, an American economist, to give "little demon economics"
Analysts said that 2015 of the data was caused by the transfer of assets from large companies to China, rather than reflecting actual growth.
Yesterday, CSO announced the new tool it will use to track the revised version of gross national income --
Nicknamed GNI *-
This eliminates the impact that the transfer of assets, transfer or depreciation of multinational corporations can sometimes have great value for intellectual property rights.
The idea is to get a better idea of the size of the economy here.
Gross national income of 9 euros.
2bn is 32 pc lower than overall GDP, suggesting that the economy may be third smaller than official data used by lenders and European institutions.
This shows that by the end of last year, government bonds accounted for 106 of the economy, the highest in Europe, compared with 73 of GDP.
The standard GDP measure is also used to calculate the bill for Ireland to join the EU, usually-of-
Thumb guide for international comparison in areas such as health, pension and education.
Ironically, while GNI * was developed as a response to data that exaggerated the size of the economy, the measure shows that last year's annual growth rate was 9. 4pc -
Much faster than official GDP. For 2015 -
When the growth of 26 personal computers triggered the economic debate on the demon --
GNI * shows that the pc's growth rate is almost 12 and is still much faster than the rest of the developed world.