Ireland’s wealth status in EU drops back to joint third place

IRELAND’S wealth status has dropped back to joint third place in the European Union’s list of gross domestic product per capita, but the fall was less than for Greece and Italy.

Eurostat figures show that while euro area hourly labour costs rose by 2.6% for the first quarter of this year compared to the first three months in 2010, they fell in Ireland by 2.2% and in Greece by 6.8%

Luxembourg, the EU’s wealthiest country by far, powered ahead, regaining the slight losses it made in 2009 to keep its place at the top of the league at 283 points, almost three times the EU average wealth per person.

For years, Ireland’s GDP, expressed in terms of purchasing power standards which eliminates price differences between countries, was second only to Luxembourg.

In 2007, before the crisis hit, it was 147, or 47%, higher than the EU average, falling over the next three years to 133, 127 and finally, last year, losing another two points to 125.

Crisis-mired Greece lost 4 points to 89, as did Italy, bringing it to the EU average of 100. Portugal, for the third year in a row, gained a point to 81, but this is likely to be reversed following a bailout agreed last month.

The Netherlands was the second wealthiest country for the third year, gaining three points to 134, followed by Denmark (up four), Ireland and Austria (up one) all on 125.

After Luxembourg (up 12), Sweden was the biggest winner, gaining five points to 123, but still behind its pre-crisis score of 125.

Germany, having languished at a steady 116 for three years, jumped three points last year to 119, while Britain gained one point to 113.

Malta gained four points, but at 83 remains below the EU average of 100 and well below the euro area average of 108.

Lithuania gained three points, but, at 58, its wealth is not yet two-thirds of the average.

The poorest country in the EU remains Bulgaria, which lost a point to come in at 43, with Romania slightly ahead at 45.

Latvia, which is going through painful austerity measures that saw its GDP drop from 56 to 52 in 2009, remained at 52 last year.

Croatia, expected to become the EU’s 28th member in two years, saw its wealth drop from 65 to 61.

Iceland, also an applicant for membership, is still struggling to emerge from the collapse of its economy and saw its GDP drop from 118 to 110 last year.