A new report from the University of Galway warns that Ireland's economic model is in urgent need of reform to sustain high living standards. The study, authored by Professor Alan Ahearne, director of the university's Whitaker Institute, highlights a critical disconnect between national productivity and individual prosperity.
The report, titled 'Ireland's Economic Model: Challenges and Choices', confirms that Ireland has some of the highest measured productivity rates in the developed world, largely driven by the multinational sector. However, it states this productivity does not fully translate into higher wages or better public services for many citizens, with domestic firms lagging significantly behind.
Key challenges identified include over-reliance on corporate tax revenue from a narrow base, a chronic housing shortage, and infrastructure deficits. The report calls for strategic policy shifts to improve competitiveness in indigenous industries, increase housing supply, and invest in public services to ensure broader-based prosperity.
