Thursday, April 24, 2014

24/4/2014: Value Added in Irish Economy, 2010 data

CSO published analysis of value added in main sectors of the Irish economy for 2010 (yes, it takes them THAT long)... And the winners (in terms of being least important to adding value) are:

  1. Construction 
  2. Agriculture
  3. Manufacturing of food, beverages & tobacco
Per CSO summary: "The main constituents of output at basic prices in 2010 were service industries at €219.5 billion (65% of the total), production industries at €98.7 billion (29.2%), construction at €13.2 billion (3.9%) and agriculture, forestry & fishing at €6.4 billion (1.9%)."

It is really that simple: want more value-added in the economy? Pursue development of traded opportunities in Education, Health, Arts, make other domestic sectors more human capital-intensive (aka more productive and innovative), put them out into exports markets... Do what you might, just don't appoint more ministers for Agriculture or Building Construction. Instead focus on making our agriculture more innovation and productivity-focused, allow and encourage consolidation of production, push forward with reforms removing CAP subsidies from farming, in other words, pursue greater focus on growing value added component of our agricultural sector.

Here is the breakdown:

And in more details:

Footnotes to the above chart:
(1) Includes Manufacture of coke& refined petroleum products;
(2) Includes technical, administrative and support service activities
(3) Includes food and beverage service activities
(4) Includes Manufacture of furniture; 
(5) Includes repair of motor vehicles and motorcycles
(6) Includes compulsory social security
(7) Includes recreation activities and other services
(8) Includes Social work activities

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