A THIRD OF Irish households have a gross annual income of less than €30,000, according to new research by the Nevin Economic Research Institute (NERI).
The research, which focused on the nature of Ireland’s income distribution, found that 56 per cent of households have a gross income of less than €50,000 – and that 62 per cent have a gross income below the mean household income.
Around 34,000 households record an income of less than €10,000 per annum. The NERI says that – in general – these comprise of single-person households, households with low self-employment income and unemployed households.
However, the top 20 per cent of households have a gross income of more than €80,000 per annum; 14 per cent of households have a gross income above €100,000 per annum; and 2 per cent of households have gross incomes above €200,000 per annum.
The income data for those living in institutions – for example, asylum centres, prisons, hospitals and care homes – is not included in the report.
‘Gross income’ is defined as cash and non-cash income from employee earnings, self-employment earnings, pensions, property income, investment income and all forms of welfare entitlement – including child benefit.
Predictions
The NERI said that, over the next three years, it projects an annual GDP growth of less than 1 per cent for 2013 and 2014 and 1.8 per cent in 2015.
A further contraction of the domestic economy following Budget 2013 and a further increase in unemployment in 2013 and 2014 should also be expected, it said.
Overall, the NERI’s assessment of the Irish economy were pessimistic – and highlighted ongoing economic stagnation as a result of continued contractions in domestic demand, sustained uncertainty at a European level, and the slow recovery of the international economy. It also highlighted “stubbornly high” levels of youth unemployment and long-term unemployment.
“The prospect of higher budgetary deficits, larger numbers unemployed, further austerity measures and the contracting domestic economy leads us to question the Government’s capacity to reach its fiscal targets in 2015 and to limit the increase in the national debt without significant changes in policy approach as well as improvement in international conditions,” it stated.
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