Ireland is on course to become one of the richest states in the EU, and within three years more than 25,000 people will have annual incomes in excess of £75,000, a new report says.
The report on wealth in Ireland, commissioned by Bank of Ireland Private Banking, says high-profile business leaders are not the only people benefiting from the rapid growth in the economy. Wealth has spread through flotations that have created paper millionaires, share options granted to employees of high-tech companies and increased ownership of houses, shares and other assets.
Irish Gross Domestic Product and Gross National Product per capita "should, over the next decade, close the gap on the richer states in the EU and the US", according to the report, entitled Wealth Report 2000.
Growth in affluence manifests itself in two major lifestyle purchases by individuals, houses and cars, according to the report. House-owners have benefited from a doubling in average house prices between 1995 and 1999.
Record prices have been attained at house auctions, and the "million-pound housing estate" is evidence of the growing number of affluent individuals. People who bought property as investments have benefited both from the appreciation in property values and strong growth in rental income.
Sales of luxury cars have jumped by 158 per cent over the 1994-1999 period with the biggest growth in the most expensive ranges of cars, the report says.
More than 500,000 people now own shares, with ownership boosted by the flotations of the Irish Permanent and First Active building societies and the privatisation of Telecom Eireann. The bank expects the number of shareholders to rise to more than 900,000 within about five years.
The value of the ISEQ Index of Irish shares has risen by over 218 per cent since 1995, boosting the personal wealth of people who hold shares either directly or through funds. Equity turnover on the ISEQ rose above £57 billion in 1999 from more than £7 billion in 1996.
On personal incomes, figures from the Revenue Commissioners show that 14,769 people reported gross income in excess of £75,000 in the 1997-98 tax year. Bank of Ireland Private Banking expects this number to increase by about 20 per cent per annum over the next three years, to reach 25,000 by 2001-02.
In addition some 5,674 directors who own their companies declared income in excess of £75,000 in 1997-98, an increase of 50 per cent over the previous three years.
Overall, Bank of Ireland expects individual wealth to grow strongly in the next five years.