| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Irish Economy Last Updated: Dec 14, 2012 - 4:09 PM

Irish Economy: Actual Individual Consumption per capita in Ireland at EU average; Germany at 20% above
By Finfacts Team
Dec 14, 2012 - 3:52 PM

Email this article
 Printer friendly page
Country abbreviation details in report

Irish Economy: Actual Individual Consumption (AIC) per capita, a better measure for the standard of living in Ireland than  gross domestic product (GDP), because of distortions caused by the dominant multinational sector, is just above the EU average. The EU member state with the second highest AIC per capita is Germany at 20 % above the average, around the same as its gross domestic product (GDP) per capita. Ireland's AIC per capita is only marginally above the average EU27 level, while GDP per capita is 29 % higher than the average. Ireland ranks with Italy at 101 compared with a EU average of 100.

In 2011, the GDP per capita in Luxembourg, expressed in purchasing power standards (PPS: the Purchasing Power Standard is an artificial currency unit that eliminates price level differences between countries. Thus one PPS buys the same volume of goods and services in all countries. This unit allows meaningful volume comparisons of economic indicators across countries.), was more than two and a half times the EU27 average. The Netherlands, Ireland, Austria, Sweden, Denmark and Germany were between around 20% and 30% above the EU27 average, while Belgium and Finland were between 10% and 20% above average. The United Kingdom and France registered GDP per capita nearly 10% above the EU27 average, while Italy and Spain were around the average.

Luxembourg has a very high GDP per capita as part of its workforce lives outside its borders.

Cyprus was around 5% below the EU27 average, while Malta, Slovenia and the Czech Republic were between 15% and 20% lower than the average. Greece, Portugal and Slovakia were between 20% and 30% below the average, while Estonia, Lithuania, Hungary and Poland were around one third below. Latvia was just over 40% lower, while Romania and Bulgaria were between 50% and 55% below the average.

These data for 2011, 2010 and 2009, published3 by Eurostat, the statistics office of the European Union, are based on revised4 purchasing power parities, and the latest GDP and population figures. They cover the 27 EU member countries, three EFTA member countries, the acceding state, four candidate countries and two potential candidate countries.

Actual Individual Consumption per capita in the member countries ranged from 45% to 140% of the EU27 average in 2011

While GDP per capita is mainly an indicator reflecting the level of economic activity, Actual Individual Consumption (AIC) per capita is an alternative indicator better adapted to describe the material welfare situation of households.

Generally, levels of AIC per capita are more homogeneous than those of GDP but still there are substantial differences across the member countries. In 2011, AIC per capita expressed in PPS ranged between 40% above the EU27 average in Luxembourg and 55% below average in Bulgaria.

Eurostat says indicators reflecting directly the situation of households are more adapted than GDP to reflect welfare. The level of consumption per head is one of these. In national accounts, Household Final Consumption Expenditure (HFCE) denotes expenditure on goods and services that are purchased and paid for by households. Actual Individual Consumption (AIC), on the other hand, consists of goods and services actually consumed by individuals, irrespective of whether these goods and services are purchased and paid for by households, by government, or by non-profit organisations. In international volume comparisons of consumption, AIC is often seen as the preferable measure, since it is not influenced by the fact that the organisation of certain important services consumed by households, like health and education services, differs a lot across countries. For example, if dental services are paid for by the government in one country, and by households in another, an international comparison based on HFCE would not compare like with like, whereas one based on AIC would.

Substantial cross-European differences in GDP per capita: Consumption and price levels varied by more than three to one [pdf]

Check out our subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March