DEveryone knows that the Irish economy grew strongly last year. But no one expected such a dramatic figure: the Irish Statistical Office on Tuesday announced that economic output in the small island republic had risen by 26.3 per cent in 2015, describing the growth rate as “dramatic”.

In their previous figures, the figures showed only a 7.8 per cent increase. Preliminary estimates put GDP down 2.1 percent in the first quarter of 2016.

What does Brexit mean for Ireland?

The huge growth over the past year is also an indication of the extent to which controversial and tax-induced profits have reached international corporations. The one-time effects contributed significantly to this increase: for example, the Office of Statistics reported that an airline leased its entire balance sheet to Ireland. Other tax swap transactions by multinational corporations also boosted economic growth.

Ireland repeatedly criticizes tax policy: levies a tax of just 12.5 per cent on corporate profits. The country charges only 6.25 per cent for profits from patents. At least so far, foreign corporations have also been able to reduce the tax burden through legal loopholes.

So Ireland is a popular destination, especially for decision makers in American companies. However, tax savings transfer postings have only limited effects on Green Island’s real economy – however, new jobs are not being created as a result.