Western Development Commission report highlights the region’s remarkable progress and the critical challenges still facing the West and Northwest.
The Western Development Commission (WDC) has made an economic impact of almost €4.8bn across the region since its inception 25 years ago.
According to an Indecon report commissioned by WDC, the organisation has supported job creation, enhanced third level education and bolstered entrepreneurial endeavour.
“While we’ve achieved a lot in the last 25 years, the Western and Northwestern Region is at a tipping point”
However, challenges remain in terms of persistent gaps in income, housing and rural infrastructure.
The Western way
“While we’ve achieved a lot in the last 25 years, the Western and Northwestern Region is at a tipping point,” said WDC CEO Allan Mulroony.
“Our report shows that with strategic investment and collaboration, we can build on this foundation to create an even more prosperous and sustainable future for the area.”
The WDC has played a pivotal role in boosting the region’s economy, helping companies generate over €3.35bn in cumulative revenue and €2.4bn in exports since its inception.
Companies supported by the State Agency contributed €404m in tax revenues, providing much-needed support for public services. When wider (indirect and induced) impacts are included, the economy-wide output impact of the WDC is estimated to be almost €4.8bn.
However, despite these successes, the report reveals a stark economic disparity, with the average disposable income in the Western Region remaining just over €3,000 below the national average.
“This income gap shows that while the region has come far, we need targeted investment in high-value areas like infrastructure, connectivity, and renewable energy to ensure long-term prosperity for the region.,” Mulrooney added.
“Gross Value Added (GVA) per capita in the West is only 53.37% of the national average (€43,540 vs. €81,573), and for the Border Region, it is even lower at 29.7% of the national average (€24,227).
“The West Region’s share of national GVA has decreased from 6.3% in 1999 to 5.07% in 2021 underscoring the importance of targeted regional development to support high-value sector investment and achieve balanced economic growth nationwide,” he urged.
Housing is identified as one of the most critical challenges for the region, with new house completions dropping from 22% of the national total in 1999 to just 11% in 2023, despite the region representing 17.2% of Ireland’s population. This shortfall poses a serious threat to the region’s ability to accommodate both current and future population growth.
While 64% of the region’s population continues to live in rural areas—compared to just 36% nationally—this presents a dual challenge. The region’s strong rural identity enriches its cultural and community life but linked to this are also major gaps in infrastructure and digital connectivity, essential for keeping these communities competitive in the modern economy.
“The region’s rural strength can be an engine for growth, but only if we address the infrastructure shortfalls collaboratively” noted Mulrooney.
“Improved transport links, and better access to public services are all vital to unlocking the full potential of rural areas. While the WDC policy team has made recommendations and submissions to the National Development Plan (NDP) and National Planning Framework(NPF) and some strides have been made, the region is lagging in comparison.”
-
Bank of Ireland is welcoming new customers every day – funding investments, working capital and expansions across multiple sectors. To learn more, click here
-
Listen to the ThinkBusiness Podcast for business insights and inspiration. All episodes are here. You can also listen to the Podcast on:
-
Apple
-
Spotify
-
SoundCloud
