Ireland and Northern Ireland - A Regional Economic Comparison 2023 - 2024

Gross Disposable Household Income (GDHI) is the money available to satisfy the needs of households and is typically the income spent on the final consumption expenditure of households. The gross disposable household income is presented in Purchasing Power Standards (PPS) and is obtained by applying the Purchasing Power Parity (PPP) for household final consumption expenditure to the euro and pound sterling values of GDHI. Values expressed in PPS allow for more meaningful comparisons than currency exchange rates since they account for differences in price levels between Ireland and the United Kingdom.

GDHI per person is consistently higher in all NUTS 2 regions in Ireland than in Northern Ireland. GDHI per person increased in all regions between 2011 and 2023. The smallest increase was recorded in Northern Ireland, 38%, and the largest increase was observed in the Eastern & Midland region at 45%. Both the Eastern & Midland and the Southern regions in Ireland experienced declines in GDHI per person in 2020 but recovered in 2021 quickly to overtake pre-pandemic levels. Northern Ireland experienced a marginal increase in disposable income per capita in 2020, followed by a return to growth in 2021 at 2%, which aligned with pre-pandemic growth rates.

Map 1.1 shows the GDHI per capita by county in Ireland and Local Government District (LDG) in Northern Ireland for 2023. Dublin (24,006 PPS), Cork (22,091 PPS), Tipperary (22,020) and Limerick (21,956 PPS) all ranked highest in Ireland and Northern Ireland. Lisburn & Castlereagh was the LGD with the highest GDHI per capita in Northern Ireland at 20,978 PPS, ahead of Kildare (20,910 PPS) and behind Wicklow (21,013 PPS). Derry City & Strabane had the lowest GDHI per capita at 17,549 PPS, followed by Longford (17,741 PPS) and Laois (17,805 PPS). Overall, GDHI per capita in Ireland was 21,489 PPS in 2023, while in Northern Ireland it was 18,998 PPS.

Dublin had the highest share of primary income as a percentage of disposable income in 2023, of which Compensation of Employees (COE) was the largest component, followed by Kildare, Wicklow and Meath, reflecting high incomes accruing to those in the commuter belt and Greater Dublin Area. Donegal had the lowest share of primary income at 96%, followed by Wexford, Leitrim, Causeway Coast & Glens, and Longford. Social benefits were also lowest in Dublin, Kildare, Cork and Galway, and highest in Longford, Donegal, Derry City & Strabane, and Leitrim. It is worth noting that social benefits are generally higher for regions where primary income is a lower share of disposable income. These regions relied more heavily on government transfers to supplement their income. Current taxes on income are also generally higher in Ireland than Northern Ireland. The highest shares were recorded in Dublin, Kildare, Wicklow, Meath and Louth, reflecting higher earnings in Ireland.

Map 1.2 shows the social benefits including other transfers on a per person basis for 2023. Similarly to Figure 1.2, social benefits per person were lowest in Dublin, Meath and Kildare, and highest in Ards & North Down, Carlow and Louth. Donegal, Longford, Causeway Coast & Glens, and Derry City & Strabane had broadly similar levels and also had high state transfers. Demographically, Ards & North Down is the oldest LGD in Northern Ireland and higher social benefits here may reflect a larger number of recipients of the state pension. In 2023, social benefits per person were 12% higher in Northern Ireland than in Ireland.