Seamus Coffey

@GTCost The IMF rowed back on lot on the growth effects from contract manufacturing in their supplement to the Article IV report that was written last week. In it they said:

"The Central Statistical Office (CSO) also released a notice in relation to contract manufacturing, a topic discussed in Box 1 of the staff report. The CSO concludes that additional products made under contract manufacturing arrangements for Irish companies were not particularly significant in explaining Irish GDP growth in 2014. The information released does not permit a precise calculation of the contribution to growth in 2014 from contract manufacturing, but suggests that the upper estimate provided in the staff report, of a contribution of perhaps as much as 2 percentage points, is likely too high."

See also http://economic-incentives.blogspot.ie/2015/03/the-growth-effect-of-contract.html though as the IMF note the CSO did not give enough info to be able to answer the question definitively.

Just a small thing but the IMF didn't say the non-MNC economy contracted by 3% in 2013 - they said the opposite! They said " in 2013 it [gross value added excluding the sectors dominated by MNEs] grows by 3 percent at a time when official GDP data were flat."

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