DUBLIN Feb 3 Ireland will modify how it
measures gross national income to gauge the true health of the
economy after recent revisions made recognised data points
problematic, the state's statistics office said on Friday.
The relevance of using gross domestic product (GDP) to
measure Ireland's highly open economy was called into question
last July when growth for 2015 was adjusted up to 26 percent
after a massive revision to the stock of capital assets.
The adjusted gross national income (GNI) measure, which will
be phased by the end of 2018, will exclude the depreciation
attributable to relocated capital assets and the impact of
re-domiciled firms, the Central Statistics Office (CSO) said.
"When you are confronted with data which have limited
possibilities in terms of interpretation, it's important to
supplement that," Irish Central Bank Governor Philip Lane, who
chaired the group that proposed the changes, told a news
U.S. economist Paul Krugman dubbed last year's GDP revision
from an original growth estimate of 7.8 percent "leprechaun
economics," much to the annoyance of Ireland's government which
has overseen a recovery revered around Europe.
A swath of secondary numbers, from unemployment to retail
sales and business surveys, point to a sharp recovery and back
up the record that by GDP, Ireland's economy has been the best
performing in the European Union for the last three years.
(Reporting by Padraic Halpin; Editing by Tom Heneghan)