As part of my continuing series on the budget I’m throwing out a few facts and figures about where we are now, and where Budget 2015 needs to take us. This latest economic snippet is about GDP and GNP.  The graph below shows the value of all products and services in Ireland (GDP) alongside with the value of products and services generated by  Irish owned business (GNP). What this shows us is that all businesses in Ireland were hit hard by the slump, but that Irish businesses were hit harder than multinational companies in the early years of the economic downturn. Since then, the story has become more complicated with Irish business recovering while multinationals appear to be flatlining.

Since 2010 foreign direct investment has been a major focus of government for job and wealth creation. This was one of the reasons that GDP increased against GNP between 2010 and 2012. But this now seems to be tailing off.

In spite of the focus by government on foreign direct investment and little support for Irish business,  recent data shows that Irish business is making a comeback with GNP rising over the last three years. This is an indication that Irish business is working, and if we want to improve this growth, Budget 2015 needs to help people start new businesses  and grow existing ones. Budget 2015 should make it easier for people to do business, and easier for entrepreneurs to start  businesses. Budget 2015 could reduce the red tape and increase supports for indigenous Irish Businesses. If Irish business is going strong with little support, imagine how it could grow with government support? A balanced approach is needed in the future to encourage growth in both Irish and multinational firms.

Source: Department of Finance