IRISH workers now ranked as most productive

in world
OECD figures suggest Republic leads way in labour productivity
Tue, Feb 5, 2019, 17:35 Updated: Tue, Feb 5, 2019, 17:40
Eoin Burke-Kennedy

 The Irish Times Fri, May 24, 2019

https://www.irishtimes.com/business/economy/irish-workers-now-ranked-as-most-productive-in-
world-1.3783173

In Ireland, workers add an average of $99.50 (€87) to the value of the economy every hour they work, according to
the OECD. Photograph: Suzie Howell/New York Times

 
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Irish workers are now officially the most productive in the world, adding an average of
$99.50 (€87) to the value of the economy every hour they work, according to the
Organisation for Economic Co-operation and Development (OECD).
The Paris-based agency published figures on Tuesday showing the Republic had the highest
rate of labour productivity, effectively economic output per hour of work, of any advanced
economy in 2017.
At the top of the OECD list was Ireland at $99.50, followed by Luxembourg ($98.50)
and Norway ($83.10). The Republic’s rate was also significantly higher than its biggest
trading partners, the United States ($72) and the UK ($61.10), and nearly twice the OECD
average of $54.80.
Labour productivity typically measures the value of work done in a given economy over
time, with higher value-added jobs generating the greatest productivity increases.
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The Republic’s position at the top of the global rankings has a lot to do with the high
concentration of multinationals here, which typically drive the biggest productivity gains.
A recent Central Statistics Office report suggested labour productivity here grew by 4.5 per
cent on average between 2000 and 2016 with a significant increase recorded in 2015, the
same year that saw a massive influx of multinational assets and an unprecedented 26 per cent
jump in gross domestic product (GDP), later derided as “leprechaun economics”.
The report also highlighted a gulf between indigenous and foreign-owned firms. Productivity
growth among foreign-owned entities averaged 10.9 over the period but was only 2.5 per
cent for indigenous firms.
Investment
Nonetheless Cantor Fitzgerald economist Alan McQuaid described the OECD’s figures as
“very encouraging”, suggesting “that even if things go pear-shaped on the Brexit front, the
end result for Ireland Inc may not turn out as bad as some are predicting”.
Learn more

“In an era of increased automation (which of course in some cases can help workers increase
productivity), with machine taking over from man/woman, it is a very positive sign that
Ireland tops the league in terms of productivity, suggesting that while we can well and truly
party, we also can work very hard,” he said.
While acknowledging the multinational component of the figures, Mr McQuaid said they
still left the Republic in a good position in terms of attracting in foreign investment.
“Any business owner looking at moving out of Britain because of Brexit or any other country
for that matter, and seeing those productivity figures, would be encouraged to come to
Ireland, all other things, such as tax liability, property costs or internet access, being equal,”
he said.
 The Top 4 Economies of the Caribbean
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BY WARREN CASSELL JR.

 

 Updated Jan 19, 2016

Secluded from the hustle and bustle of the busy cities of the world, the Caribbean
is known as one of the world's top vacation destinations. With as many as 40
million residents and 28 island nations, the Caribbean is comprised of some of
the world's most dynamic economies. Below we take a look at four of them.

Trinidad and Tobago

In addition to being the wealthiest country in the Caribbean region, the twin-
island nation of Trinidad and Tobago has one of the highest per capita Gross
Domestic Products (GDP) in the entire Western Hemisphere, coming third after
the United States and Canada. The Republic is considered to be a high-income
economy by the World Bank. This means that the country’s Gross National
Product (GNP) per capita is more than $12,735. In 2011, the Organization for
Economic Co-operation and Development (OECD) removed Trinidad and
Tobago from its list of developing countries.

According to the CIA World Factbook, Trinidad and Tobago’s GDP was $28.87
billion in 2014. The real GDP growth rate for that year was 0.8%, which was
down from 1.7% realized in 2013. Unlike most economies in the Caribbean,
Trinidad’s main revenue source is not tourism. Instead, the country’s economy is
highly dependent on petrochemical and liquefied natural gas exports as a result
of their large oil and natural gas reserves. As a member of the Caribbean
Community (CARICO M), Trinidad benefits from trade alliances among other
Caribbean states.

Although Trinidad and Tobago remain the Caribbean’s strongest economy, the
country has been dealing with economic issues in recent times. During the
island’s 2015 fiscal year, Trinidad and Tobago reported four consecutive quarters
of negative GDP growth. This led to an announcement by local Central Bank in
early December 2015 stating the country was officially in a recession. The
recession has come as a result of the fall in international energy prices. Trinidad
and Tobago use a floating exchange rate regime and as of Jan. 11, 2016,
one United States Dollar (USD) could have been exchanged from $6.43 Trinidad
and Tobago Dollars (TTD). (See also, Main Drivers of Trinidad and Tobago’s
Economy.)

Jamaica
Up until recently, Jamaica was mostly known for its reggae music, crystal clear
beaches, and a distinct accent. However, the Caribbean island’s financial
industry recently made headlines when Bloomberg reported that the Jamaica
Stock Exchange (JSE) was the world’s best-performing stock market for 2015.
While the Standard and Poor’s 500 Index (S&P 500) reported negative returns in
2015, the JSE market index rose by 97%. This came as a result of foreign
acquisitions and a recovering economy.

The Jamaican economy is heavily reliant upon export revenues from its
agriculture and mining industries. According to a January 2015 report published
by the U.S. Geological Survey (USGS), Jamaica owned the world's fifth largest
bauxite reserves in 2014. The report also revealed that the island with
a population of 2.8 million was the world's eighth largest producer of bauxite for
that same year. Other Jamaican exports include alcoholic preps for beverages,
cassava, raw sugar, and raw coffee beans. In fact, the Jamaican Blue Mountain
Coffee is one of the world’s most popular types of coffee.

Like Trinidad and Tobago, Jamaica is a member of, CARICOM, a common

market in the Caribbean. A heavily indebted nation, Jamaica’s economy has
been slowly bouncing back from a recession. For the third year in a row, the
island reported positive economic growth. In 2015, Jamaica’s GDP was
estimated to have increased by 1.4%. This can be considered a fairly good
improvement in the economy as the island’s 30-year average economic growth
is less than 1%. In recent times, the Government of Jamaica has been working
on economic reforms that have gained support from the International Monetary
Fund (IMF), World Bank, and the Inter-American Development Bank. (For more
see, List of the Major Stock Exchanges in the Caribbean.)

Cayman Islands
Many people wish that they could avoid paying income taxes without getting into
trouble with the law—the residents of the Cayman Islands are afforded the luxury
of doing so. Known as one of the world’s top tax havens, the Cayman
Islands imposes a 0% tax rate on income earned by both individuals and
corporations. Additionally, there are no capital gains, gift or property taxes in the
British Overseas Territory.

As a result of its tax neutral status, the Cayman Islands has attracted many
wealthy people and corporations to incorporate business entities in their
jurisdiction. The primary source of the government’s revenue comes from indirect
taxes such as value-added tax (VAT) and customs duties. Like most tax havens,
the majority of the law firms, accountants, and company managers in the
Cayman Islands focus their efforts on serving the financial services industry.
The Government of the Cayman Islands also makes a substantial amount of
money from fees associated with registering and renewing offshore companies
and hedge funds. In 2007, the financial services industry in the Cayman Islands
generated $1.2 billion Cayman Island dollars (KYD) in GDP, representing 55% of
the nation’s economy. The industry also covered 40% of all government revenue,
directly generating KYD$ 204 million. Unlike Jamaica and Trinidad and Tobago,
the Cayman Islands uses a fixed exchange rate regime. As one of the world’s
strongest currencies, the US$1 can buy KYD$0.82. (Related article, Caribbean
Currencies: An Overview.)

Dominican Republic
In addition to possessing the ninth largest economy in Latin America, the
Dominican Republic has the largest GDP among the different nations that make
up the Caribbean. In 2014, the Dominican Republic reported an economic growth
rate of 7.3%, an increase from 4.8% realized in 2013, as well a GDP of $64.14
billion. Strong trading relationships and large remittance paymentshelped to
contribute to the expansion of the island's economy. In fact, remittances serve as
the island’s third largest source of foreign exchange.

In addition to being the Caribbean’s second largest producer and exporter of

sugarcane, the Dominican Republic exports cigars, sugar cane, refined
petroleum, and bananas. The island’s list of key trading partners includes the
United States, China, and Haiti. (See also, Find the Top Caribbean Islands For
Retirement.)

The Bottom Line

Much more than a holiday destination, the Caribbean region consists of small
island economies that are major players in a wide range of global industries. The
twin-island state of Trinidad and Tobago, for example, has fueled their economic
growth with export revenues from oil and gas. On the other hand, Jamaica is one
of the world’s leading producers of bauxite. The Dominican Republic and the
Cayman Islands are well-known offshore tax haven of choice for multinational
corporations and billion dollar financial service companies.

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