Is Ireland’s productivity boom genuine or ‘artificial’?

The sprawling factory site of one of Ireland’s most famous brands, Guinness, is located behind the traffic of Dublin’s Liberties. Owned by global drinks giant Diageo, the Guinness factory produces 3.5 million pints a day and is known for its efficiency and use of technology. Aidan Crowe, operations director for beer, states that while technology has allowed for greater efficiency, the core process of brewing beer remains similar to what founder Arthur Guinness would have used. Ireland’s economy has benefited from being the base for many multinational firms, making it the most productive country in the world according to OECD rankings. However, some economists argue that the presence of multinational firms skews Ireland’s economic data and that using gross national income (GNI) as a measure may provide a more accurate representation of productivity. Despite the debate, Ireland’s attractiveness as a country to do business is not solely due to tax benefits, but also factors such as its English-speaking status, membership in the EU, and a well-educated workforce. Productivity in the post-pandemic era has become a challenge as more workers are remote or distributed across different countries. Communication and alignment among staff are crucial for maintaining productivity in this new work environment.