Vol. 507 No. 1
23 Mr. O'Shea asked the Minister for Finance his views on the increase in the disparity between GDP and GNP and the increased reliance on foreign direct investment which appears to be indicated; and if he will make a statement on the matter. [16135/99]
According to the most recent national accounts data published by the Central Statistics Office, which relate to 1997, gross domestic product is estimated to be £48.241 billion compared with gross national product of £41.919 billion, a difference of £6.322 billion or 13 per cent of GDP. This compares to a gap of £2.796 billion in 1991 which amounted to 9.9 per cent of GDP. For 1997 most of this difference relates to the profits of multinational companies operating in Ireland.
The foreign-owned sector has made a significant contribution to the economy's transformation over the last 30 years and to the exceptional performance of recent years. According to the IDA's annual report for 1998, there were 1,140 overseas companies in Ireland directly employing over 116,000 people. Adding to this total the indirect employment generated by these companies, it is clear that the foreign-owned sector is crucial to the economy. In addition, many of these companies are operating in high-growth sectors where the potential exists for continued strong growth in output and employment.
