Productivity in the domestic market trails behind European peers, report suggests

Ireland would need to increase the amount of hourly value-added by 17% to reach the average of its economic peers

Hospitality, transport and manufacturing were among the sectors examined by Neri for the report, all of which underperformed compared to productivity in other similar economies.

Productivity in the domestic economy may be trailing behind European peers due to poor infrastructure and low levels of investment, suggested research by the Nevin Economic Research Institute (Neri).

In its report titled ‘Productivity in Ireland’s Domestically-Owned Market Economy’, published with trade union Siptu, Neri indicated while multinationals continued to buoy the economy, there were signs domestic sectors were underperforming, which could be leading to lower wages.